Following the November announcement that Dallas-based MODE Transportation, a non-asset 3PL offering truckload, less-than-truckload, intermodal, ocean, rail, air, and managed transportation services, said it entered into a definitive merger agreement to acquire Jacksonville, Fla.-based SunteckTTS, a multimodal transportation solutions provider, MODE officials said this week that the deal is now official.
A purchase price was not disclosed.
MODE officials said that as per the terms of the agreement both Mode and SunteckTTS will operate under the MODE name, adding that the combined company will facilitate more than 1.5 million annual customer shipments and generate more than $2 billion in revenue. And they added that the combined entity will provide shippers with various modal services, including truckload, less-than-truckload, rail intermodal, drayage, air, ocean and parcel freight. They also said that the company will continue to invest in technology and innovation best serve the agent, shipper, and carrier communities.
MODE President and CEO Jim Damman will be the company’s CEO, with SunteckTTS CEO Ken Forster serving as president and COO, with the company adding that its leadership team will be comprised of senior executives coming from Mode and SunteckTTS.
“MODE and SunteckTTS together will create one of the strongest and most customer-focused multimodal 3PLs in the industry,” said MODE’s Damman in a statement. “We are excited to leverage our combined talent and expertise to bring an enhanced suite of capabilities and creative solutions to our customers, agents and carriers.”
And Sunteck’s Forster said that going back to the November announcement, regarding the deal, Sunteck has subsequently received overwhelmingly positive feedback from its employees, agents, carrier partners and shippers.
“We are excited about our new team and capabilities and look forward to integrating our platforms and gaining the benefits of this industry changing transaction,” he said.
In September 2018, MODE was sold by freight transportation services provider Hub Group to an affiliate of global private investment firm, York Capital, for roughly $238.5 million.
Hub Group acquired MODE in April 2011, when it acquired asset-light transportation company Exel Transportation Services (ETS), a subsidiary of Deutsche Post World Net, for $83 million. Hub subsequently re-named Exel as Mode Transportation.
Dick Armstrong, chairman of supply chain consultancy Armstrong & Associates, told LM in November that MODE’s acquisition of SunteckTTS is interesting on multiple fronts.
“Mode was always the weak sister for Hub,” he said. “Sunteck’s gross margin is ~ 18%, and MODE’s is ~ 12%. I would expect Sunteck personnel to exercise most day-to-day control. The core operational areas are complimentary: Sunteck SE-North; Mode Texas based with a lot of intermodal.”
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