Transplace announced this week that it has acquired Logistics Management Solutions (LMS), “a non-asset-based third party logistics provider with particular strength in the chemical and industrial manufacturing sectors.” According to the press release, “LMS delivers freight management solutions and transportation savings to a diverse customer base that includes Monsanto and several other Fortune 500 companies.” Here’s what Transplace CEO Tom Sanderson had to say about the deal:
“Acquiring LMS further supports our commitment and strategic plan to grow Transplace and build a competitive advantage for our company and our customers. We are pleased to add LMS’s knowledgeable, experienced employees to our workforce. Bringing the LMS team on board allows Transplace to offer more services to its existing customers and to serve an entirely new set of customers, as well as continue to expand our presence in key verticals, such as the chemical industry.”
Like Transplace, LMS also offers its own proprietary transportation management system called TOTAL, which I assume will ultimately get phased out in favor of Transplace’s TMS.
There continues to be a lot of M&A activity in the 3PL space, driven in large part by the growing presence of private equity players in the market. Is the 3PL industry following the same path as the software industry, where financial rollups have been occurring for several years? If so, what does this mean for the industry — and customers? Some food for thought for another day.