Landstar Announces the Acquisition of Two Supply Chain Transportation Integration Companies
"Today is a very exciting day in the continuing evolution of Landstar," said Landstar President and CEO, Henry Gerkens. "These two technology-based acquisitions immediately position Landstar as a premier supply chain solutions provider for small and large customers alike in a software-as-a-service (SaaS) environment. Landstar independent sales agents will now be able to offer customers complete integrated supply chain solutions with industry-leading technology. Additionally, our third-party capacity should benefit from increased loading opportunities created through this new service offering."
Premier, based in Detroit, Michigan, will remain under the leadership of Scott Taylor as President. Premier provides dynamic freight management services for customers through its proprietary Web-based software. Through its operating subsidiaries, National Logistics Management (NLM) and Interactive Capacity Gateway LLC (ICG), from purchase order to delivery, the Premier solution includes Web-based bidding, scheduling, shipping, tracking and reporting, allowing customers complete real-time visibility to follow their inbound and outbound shipments from pickup to destination.
Taylor brings more than 30 years of industry experience in transportation and software solutions. In 1989, he founded NLM to support the management of critical and dynamic freight. Under his leadership, Premier's operating entities have received numerous awards and recognition for their innovative use of technology in the freight management industry.
A3i, based in Ann Arbor, Michigan, will provide customers with state-of-the-art Web-based transportation and supply chain management technologies to optimize the complete order-to-cash process. The A3i solution offers shipment optimization, carrier visibility and supply chain event management, all with multi-lingual, multi-currency and multi-modal capabilities.
Lorne Darnell, one of the principal officers and founders of A3i, will continue in his role as President. Darnell's experience in the software and logistics industries totals more than 25 years. He is the former CEO and co-founder of LogiCorp Inc., the first non-asset based, 3PL company in the automotive manufacturing industry, and has served in various management positions at Ford Motor Company and Rockwell International. He also co-founded and served as president of Data TV Networks, Inc., a software company dedicated to the development of interactive solutions for digital cable TV.
Continued Gerkens, "Premier and A3i provide complementary transportation management solutions that, together with Landstar's existing information technology platform, place Landstar on the cutting edge of the transportation and logistics industry. Scott Taylor and Lorne Darnell bring a wealth of knowledge and experience to Landstar and I am very pleased to have them join Landstar's management team."
Both companies will operate as separate subsidiaries of Landstar Supply Chain Solutions, Inc., a newly-formed Landstar company to be headed by Landstar Global Logistics, Inc. President, Jim Handoush.
During the 2009 second quarter, Landstar incurred approximately $2.0 million in costs related to these acquisitions. These one-time acquisition related expenses will be reflected in the 2009 second quarter income statement and will reduce the 2009 second quarter diluted earnings per share by approximately $.02 per diluted share. The Company expects that the acquisitions will not have a material effect on its revenue and earnings for the third and fourth quarters of 2009.
The following is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not based on historical facts are "forward-looking statements". This press release contains forward-looking statements, such as statements which relate to Landstar's business objectives, plans, strategies, expectations and intentions. Terms such as "anticipates," "believes," "estimates," "intention," "plans," "predicts," "may," "should," "will," the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or workers' compensation claims; unfavorable development of existing claims; dependence on independent sales agents; dependence on third-party capacity providers; disruptions or failures in our computer systems; a downturn in domestic or international economic growth or growth in the transportation sector; substantial industry competition; and other operational, financial or legal risks or uncertainties detailed in Landstar's Form 10K for the 2008 fiscal year, described in Item 1A Risk Factors, and other SEC filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements, and Landstar undertakes no obligation to publicly update or revise any forward-looking statements.
About Landstar:
Landstar System, Inc. delivers safe, specialized transportation and logistics services to a broad range of customers worldwide. The Company identifies and fulfills shippers' needs through the coordination of individual businesses comprised of independent sales agents and third-party transportation and logistics capacity providers. Through its operating subsidiaries, Landstar delivers excellence in complete transportation logistics services and solutions. All Landstar transportation companies are certified to ISO 9001:2000 quality management system standards. Landstar System, Inc. is headquartered in Jacksonville, Florida. Its common stock trades on The NASDAQ Stock Market(R) under the symbol LSTR.
SOURCE Landstar System, Inc.
http://www.landstar.com