Estes Forwarding Worldwide (EFW) announced Thursday it will acquire forwarder Superior Brokerage Services (SBS).
Minneapolis-based SBS is an asset-based supply chain services company specializing in domestic and international transportation, customs brokerage, and warehousing. The end-to-end operation provides shippers with a single source to move shipments into the U.S. from abroad.
The company is privately owned, debt-free and has been in operation for more than 25 years. Its customer book includes mostly large, strategic accounts.
The acquisition gives EFW control of the shipping process from points of origin in Asia as well as incremental capacity for its international operations. SBS’ Asian operations are centralized at a control tower in Taiwan.
SBS has more than 350 employees, who will be combined with EFW’s head count of roughly 750. A news release said additional hiring will continue over the next few months to accommodate recent growth.
Financial terms of the transaction were not announced, but EFW said the acquisition will double its revenue, allowing it to close in on a $1 billion annual target. The deal is expected to close at the end of October.
“We complement each other’s business very well with very little overlap, and together, we’ll prove to be more agile in servicing our customers, both internationally and domestically,” said Scott Fisher, CEO at EFW.
Richmond, Virginia-based EFW is a subsidiary of Estes, one of the largest less-than-truckload carriers and the largest private carrier in North America. EFW specializes in a full suite of logistics and freight forwarding services. The company will celebrate its 20th anniversary this month.
This is the second acquisition of the year for EFW. In March, it acquired Legacy Logistics, which specializes in logistics for trade shows and exhibits.
“While we have similar philosophies, our companies have succeeded in different areas. Combining our strengths will enable us to better serve customers across the globe,” said Paul Goff, founder and president of SBS.
Goff will join EFW as an executive vice president while Fisher will lead the combined operation.
“There’s a lot to celebrate this year, and looking back on our 20-year history, it’s remarkable to be within striking distance of the $1 billion mark,” Fisher added. “Joining with SBS to bolster our global services is a monumental achievement, and we are extremely appreciative of our team’s dedication and hard work throughout our entire 20-year journey.”
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