North American 3PL Wheels Group Inc. has signed a definitive purchase and sale agreement for the acquisition of MSM Group of Cos.
Wheels, a non-asset provider of supply chain logistics services, said it expects the MSM purchase to close before the end of September. MSM provides less than truckload (LTL) freight brokerage, LTL consolidation, and LTL freight forwarding in the United States and Canada, with a focus on California and Ontario.
MSM said it provides the ports of Long Beach and Los Angeles and all of Southern California with same-day service.
Doug Tozer, chief executive officer of Wheels, said the acquisition is part of an overall growth strategy by the company to build its LTL services.
In 2011, MSM had revenues of roughly $44 million and a gross margin of $11 million. Wheels will pay roughly $18.6 million for the operations, of which $16.6 million will be paid in cash. - Geoff Whiting