The Wellington Group of Companies is continuing its strategy of expansion through acquisition with its purchase of Contract Express, according to an announcement Wednesday.
Wellington and Contract Express, both based in Canada, did not disclose terms of the deal. The addition will expand Wellington’s services including its brokerage, truckload and LTL business in the U.S. and Canada.
No changes are expected, and Wellington Group intends to maintain the DNA of Contract Express, Wellington president and CEO Derek Koza said in the announcement.
However, by combining with Wellington, Contract Express has access to the buying power and support of a larger group, Koza said. Preserving Contract Express’ brand allows the company to “have its very own unique identity,” he said.
“It’s the unique identity within our businesses which helps make us who we are, i.e. a well-diversified business who believe our people are our brand and our people are why we are successful,” Koza said.
Contract Express operates a fleet of more than 20 tractors and maintains a network of over 200 partner carriers, according to its website.
Wellington has grown through acquisitions, while also preserving the brands of the businesses it purchases. When it acquired Trucking Proz of Hudson, Wisconsin, in February 2020, the dry van, reefer and dedicated services company retained its name and became a division of Wellington.
The trucking and logistics industries have seen a flurry of merger and acquisition activity this year as the sector struggles through a weak freight environment.
RXO announced on June 23 it entered into a definitive agreement to acquire Coyote Logistics from UPS for $1.025 billion. TFI International on June 19 announced it purchased Canada-based food-grade tank hauler Entreposage Marco.
