Two third-party logistics firms specializing in last-mile transportation services—3PDelivery and General Transportation Services (GTS)—have merged their operations to become the country’s third-largest provider of home delivery services to retailers. The much-fragmented market segment is worth $8 billion a year in business, 3PDelivery said.
The new company, which will continue to operate under the 3PDelivery and GTS names, is now comprised of 1,100 trucks and 1,200 drivers operating in 45 states. Annual combined revenues will be nearly $200 million.
“We believe there are significant growth opportunities in this industry,” said GTS co-founder Fred Maggio, who will serve as the newly merged company’s vice chairman.
Founded in 2001, 3PDelivery serves home improvement and building supply retailers. Prior to the merger, the company operated in 35 states and employed approximately 700 drivers, making some two million deliveries per year with revenues expected to top $110 million in 2006
GTS, founded in 1983, operated 44 dedicated delivery facilities in 21 states and completed more than 1.5 million deliveries annually prior to the merger. The company had expectations of $72 million in revenues for 2006.
