As part of its expansion toward the western United States, Syracuse, N.Y.-based Mohawk Global Logistics has purchased OEC Freight Chicago for an undisclosed amount.
OEC will be absorbed into the Mohawk brand, but OEC's employees will all remain in place. OEC's owner is retiring.
Mohawk has established a strong base in the New York region, and this acquisition was a major step in spreading the business into the Ohio Valley, with future thoughts of moving out even farther. The fact that OEC Freight Chicago is the agent for Mohawk's largest partner in Asia also helped the deal.
"We have New York covered as far as the gateway is concerned, and the next step was to go into Chicago, open up that office as a gateway operation and basically give us smoother access to the Midwest," Mohawk's Michael Kuhn told American Shipper
Kuhn said he's pleased with Mohawk's performance in 2013 so far. The company ended the first quarter with 25 percent, year over year, growth in revenue, he said, due to an expanded client base. The company's recent expansion in information technology solutions, coupled with its growing network and focus on customs compliance, has allowed it to secure what Kuhn called more A clients, moving away from exclusively B and C customers.
While the current plan is to work at integration OEC into the company, Kuhn said there could be some more movement in the foreseeable future.
"We have Cleveland right now in our sights, and hope to be open in Cleveland within the next six to 12 months," Kuhn said. - Jon Ross
and Chris Dupin