Michigan-based asset-light logistics provider aims to boost western U.S. presence with latest acquisition.
Third-party logistics provider Universal Logistics Holdings (Nasdaq: ULH) is buying intermodal services firm Specialized Rail Service for $12.3 million in a bid to expand its western U.S. presence.
Utah-based SRS provides intermodal drayage, transloading, and warehousing in 11 states west of the Rockies. Its drayage fleet is comprised of 140 tractors, in addition to owner-operator tractors.
The company’s Ogden, Utah facility is served by the Union Pacific (NYSE: UNP) and includes 11 rail car spots for handling flatcars, gondolas, centerbeams, and covered coil cars.
SRS also operates the Southwest Transload & Distribution in Las Vegas, adjacent to the Union Pacific Railroad Intermodal and Auto facility in North Las Vegas, which SRS also performs ramp operations. The location features eight rail car spots served by the Union Pacific Railroad and an open-air dock with 5 car spots available.
SRS also operates a warehouse served by the Utah Central Railway, which can receive cars from both Union Pacific and BNSF (NYSE: BRK.A).
SRS says the facilities specialize in handling construction materials including steel rebar, beams, plate, coil and lumber products. The company reported revenue of $25.8 million last year.
ULH chief executive Jeff Rogers says the acquisition of SRS “fits nicely in our acquisition strategy, and provides us an excellent platform for further expansion in the western United States.”
ULH currently owns 19 terminal yards primarily east of the Rockies, with leased facilities in 25 states, Canada and Mexico.