KAG Logistics has completed the acquisition of Connectrans Logistics, entering the Canada market with the purchase of the Toronto, Ontario-based 3PL, the companies announced last week. The terms of the deal were not provided.
Connectrans, which specializes in cross-border freight transportation between Canada and the U.S., has a carrier network of dry van, reefer, flatbed, over-dimensional and intermodal trucks.
KAG Logistics — the brokerage arm of the largest U.S. tanker carrier Kenan Advantage Group — expects the move will particularly benefit its specialty products division, President Kevin Spencer said in a statement. The company also routes shipments of energy commodities, renewable fuels, food and other freight.
“It also allows us to continue strengthening our cross-border experience as we serve our current and potential Canadian and U.S. customers that flourish in both marketplaces,” Spencer said.
The acquisition provides Connectrans customers with access to the U.S. marketplace, industry-leading technologies and additional logistics expertise from an experienced leadership team, Steve Hodowany, president and general manager of Connectrans, said in a statement.
“By partnering with KAG Logistics, we will be able to offer our customers enhanced capabilities,” Hodowany said. “We expect an extremely smooth transition as both of our organizations are dedicated to exemplary performance across North America.”
In-house cross-border operations carry advantages, especially for logistics giants handling large amounts of freight. In J.B. Hunt’s rapid nationwide expansion of its transloading operation, the carrier located one of its first four transloading sites at the Mexico border in Laredo, Texas, citing the advantages for cross-border movements.
Connectrans is not parent company Kenan Advantage Group’s first foray into Canada. The tanker and logistics giant established KAG Canada following its November 2013 acquisition of RTL-Westcan, according to its website.
Kenan Advantage Group also acquired Carbon Express, a Wharton, New Jersey-based liquid bulk carrier specializing in chemicals, transformer and motor oils, lubricants and water treatment chemicals, it announced this month. Roughly 65 Carbon Express drivers joined KAG under the deal. Terms were not provided for that deal either.
