In a January interview, Estes Express Lines President and COO Webb Estes envisioned a year of mostly organic growth for his company — particularly for the LTL unit that represents about 85% of its revenue.
But eight months later, the privately owned, Richmond-based carrier has followed the opportunistic strategy that has led it to become one of the largest companies in trucking. It has seized M&A opportunities in LTL and, now, in brokerage.
Estes Forwarding Worldwide, the company’s 20-year-old freight forwarding unit, will acquire Minneapolis-based Superior Brokerage Services, it announced Thursday. Estes expects the deal to double its annual forwarding revenue.
Estes Forwarding Worldwide CEO Scott Fisher said the acquisition will put his business within striking distance of $1 billion in revenue.
The acquisition is expected to close at the end of October. Terms were not disclosed.
The deal includes Superior’s business in Asia, giving Estes Forwarding Worldwide a footprint in the region and control tower in Taiwan. A presence there will support Estes Forwarding’s expansion of its international services into new markets, as well as increase capacity and enable better end-to-end supply chain services for U.S. customers.
“SBS has built a tremendous reputation in our industry,” Fisher said in a statement. “We complement each other’s business very well with very little overlap, and together, we’ll prove to be more agile in servicing our customers, both internationally and domestically.”
Fisher will lead the combined companies with Paul Goff, founder and president of SBS, who is staying on as executive vice president. Estes Forwarding Worldwide, which has more than 20,000 active customers, will grow to more than 1,100 employees from its current 750, with hiring ongoing over the next few months.
“While we have similar philosophies, our companies have succeeded in different areas,” Goff said in a statement. “Combining our strengths will enable us to better serve customers across the globe.”
Estes has made a splash on the LTL side of its business this year, as well. The company has entered billion-dollar-plus offers in a bidding war against rival Old Dominion Freight Line for bankrupt Yellow Corp.’s nationwide network of 169 owned terminals. Estes reemerged as the stalking horse bidder with a $1.525 billion bid last week.
