Memphis, TN-based logistics company GST Corp., a subsidiary of NYK Logistics, has acquired third-party trucking and intermodal logistics provider Vexure. Terms of the acquisition were not disclosed.
Vexure spokesman Russ Dixon told Fleet Owner that the main reason for the deal was for Vexure to gain access to more working capital to fund technology upgrades and to widen its offerings to include domestic LTL and international shipping services.
“Technology is such a huge piece of the third party logistics business that we needed to find a way get the investment capital we needed to keep growing,” he said. “Our plan is to be a $250 million company by 2007 and that’s a tall order for a firm that earned $43 million in revenue just two years ago.”
Dixon also noted that Jacksonville, FL-based Vexure now gets access to services it didn’t used to have by being acquired by GST – services that will help it gain a greater foothold among larger customers that ship freight by various modes around the world.
“For example, we’ve always been primarily a truckload focused company that could take what a shipper needed to a port for export -- but that was about it,” he said. “Now we have access to GST’s LTL service package and NYK’s global logistics systems – now we have a much broader service offering.”
Dixon added that there would be no changes to Vexure’s management team or to how customer accounts are handled as a result of being bought by GST. He also said Vexure is on target to earn $80 million to $88 million in revenue this year and plans to reach $120 million in 2004.