Dive Brief:
- Chicago area-headquartered AIT Worldwide Logistics has acquired St. Louis-based Krupp Trucking, which specializes in high-value goods, the company announced last week.
- The acquisition includes a 115,000-square-foot office and warehouse in St. Louis County, Missouri, a fleet of more than 60 over-the-road and local trucks and a staff of nearly 100, the news release said.
- “We see a powerful synergy between our two organizations,” AIT Chief Development Officer Ray Fennelly said. “This partnership combines AIT’s vast global network and vigorous governance with Krupp’s high-quality service and logistics solutions.”
Dive Insight:
Krupp’s experience in computer equipment puts it in an area that’s seen tremendous growth despite the freight recession.
Consumer spending on durable recreational goods, consisting of anything from sporting equipment such as guns and ammo to recreational vehicles and computers and software, was $665 billion in Q3 2024.
Growth in that area during the COVID-19 pandemic far outpaced other durable categories, such as motor vehicles and household furnishings, analytics firm FTR said last week as part of its 2025 outlook.
“In the past couple of years, it has been by far the biggest driver of growth on spending on durable goods,” FTR VP of Trucking Avery Vise said on a webinar Thursday.
This recreational goods personal consumption expenditures category is especially driven by consumer electronics, Vise also noted.
AIT highlighted the customer potential and growth with the deal.
“Together, we’re well positioned to elevate the customer experience, especially when it comes to providing white glove logistics services for the high-tech industry,” Fennelly said.
Similar M&A deals have allowed others to expand into new customer profiles, a trend that could be particularly poignant in 2025. These types of transactions last year included Enservco acquiring Buckshot Trucking, broadening its year-round business opportunities, and EVO Transportation & Energy Services, primarily a mail carrier, acquiring dry van TL carrier West Side Transport.
