Universal Logistics Holdings Expands with Parsec Acquisition
Universal Logistics Holdings Makes a Strategic Move
Universal Logistics Holdings, Inc. (NASDAQ: ULH) has recently completed an acquisition that marks a significant milestone in its growth trajectory. The company has welcomed Parsec, LLC and its associated subsidiaries into its operational fold. Parsec is recognized as a leading provider of terminal management services, operating extensively across North America's rail industry.
Expanding Capabilities in Terminal Management
With over 2,100 employees, Parsec delivers a comprehensive range of terminal services at more than 20 rail yards. Its expertise lies in managing time-sensitive operations involving container lifts, ensuring that logistical processes run smoothly at some of the most complex rail terminals. Furthermore, Parsec enhances its service offerings by providing equipment repair, drayage solutions, and stacking services for both containers and chassis.
Robust Financial Performance
For the fiscal year leading up to its acquisition, Parsec reported impressive operating revenues, totaling approximately $230.2 million. The integration of Parsec into Universal's operations is expected to significantly contribute to the company's contract logistics segment, pushing revenues past the $1 billion mark annually.
Leadership Insights on the Acquisition
Tim Phillips, the CEO of Universal Logistics, expressed enthusiasm regarding the acquisition. He emphasized the strategic advantages brought by Parsec’s established customer relationships and its proven track record in the rail sector. This partnership is poised to elevate Universal's service offerings, further consolidating its presence in logistics.
Understanding the Acquisition Details
The finalized cash purchase price for acquiring Parsec was set at $193.6 million, with customary post-closing adjustments to account for financial details. Legal guidance was provided to Universal by Dykema Gossett PLLC and Vistula PLC, while Livingstone Partners represented Parsec’s financial interests.
Universal's Commitment to Comprehensive Solutions
Universal Logistics Holdings operates as a prominent holding company, well-established in providing diverse transportation and logistics solutions. Its reach extends across the United States, Canada, Mexico, and Colombia, where it offers scalable supply chain solutions tailored to meet evolving demands. The company is committed to delivering a wide array of services that encompass trucking, brokerage, intermodal delivery, dedicated services, and other value-added solutions.
Impact of Parsec's Expertise on Universal's Future
As Universal expands its portfolio with Parsec, the integration of advanced logistical capabilities promises to enhance operational efficiency and service delivery. The strategic move is anticipated to not only improve Universal's contract logistics segment but also provide more significant value to customers relying on rail terminal solutions.
Frequently Asked Questions
What companies did Universal Logistics Holdings acquire?
Universal Logistics Holdings acquired Parsec, LLC, along with its subsidiaries.
How does the acquisition of Parsec benefit Universal Logistics?
The acquisition strengthens Universal's position in the rail terminal operations segment and is expected to boost its contract logistics revenues significantly.
What is the cash purchase price for Parsec?
The purchase price for Parsec was $193.6 million, subject to customary adjustments.
Who advised Universal Logistics during the acquisition?
Universal was advised by Dykema Gossett PLLC and Vistula PLC for legal matters, while Livingstone Partners acted as their financial advisors.
What services does Parsec provide?
Parsec offers terminal management, container handling, equipment repair, drayage, and stacking services across North America.
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