The acquisition closed in October. Financial terms were not disclosed.
Charlotte, North Carolina-based FSI operates container terminals in the Carolinas, providing cross-docking, warehousing, yard operations, drayage, and maintenance and repair services. The company’s facilities connect to the rail lines of Norfolk Southern (NYSE: NSC) and CSX (NASDAQ: CSX).
The acquisition of the more than 25-year-old family-owned business will add incremental capacity to CPG’s Southeastern operations. FSI’s 120 trucks and independent contractors will increase the CPG fleet to more than 1,300 contractors.
“By adding power units now, we are positioning our organization for success as we get into 2021,” said CPG President Richard McDuffie. “We’ve been working with FSI and their team for several months, so this really will be a change in name only. We’ll still be providing the same level of service that customers are used to receiving.”
Founded in 1971, CPG is the trucking subsidiary of The World Group, a 60-year-old conglomerate which includes World Shipping Inc., a provider of multimodal (ocean, trucking and rail) international cargo services like freight forwarding, warehousing, distribution and customs clearance. The companies are headquartered in Cleveland with CPG focused on intermodal drayage.
“This transition will allow for more opportunities, as the alignment of FSI with CPG will streamline the dispatch of freight. And there will be other opportunities to help more customers in more markets as we grow,” said FSI President TJ Frye.
Frye will join CPG as regional vice president.
CPG also announced the opening of a new terminal in Minneapolis, a two-acre facility near Interstate 35 and two rail ramps. The facility will provide safe storage and specialized equipment, including 40-foot chassis and tri-axles. This will be the company’s 25th trucking and drayage terminal in the U.S.
“With our existing network throughout the lower Midwest, the expansion to Minneapolis just made sense,” said McDuffie. “Our decision to open another location is a sign that our company is continuing to grow and add business, despite the circumstances that surrounded 2020. We would not have made this decision if we did not have support and commitment from our customers.”
The terminal is scheduled to open Jan. 4.