Most companies seeking outside logistics expertise hire a third-party service provider to give them a hand. But it appears that Supervalu Stores didn't want to bother with hiring a third party; it went out and bought one. Last month, the Milwaukee-based grocery chain announced that it was acquiring Total Logistics Control (TLC) in a deal valued at $233 million.
Workers at Total Logistics, also based in Milwaukee, have received assurances that the acquisition will not trigger large-scale layoffs. "We are most pleased that this transaction will provide continuity of employment for our management teams and associates, as well as a full commitment to continued high service and product quality for our customers," says Total Logistics Inc.'s president and CEO,William T. Donovan.
For his part, Jeff Noddle, chairman and CEO of Supervalu, says he sees the acquisition as a business opportunity. "The combination of Supervalu's scale and supply chain competence together with Total Logistics Inc. and its nationally recognized reputation in thirdparty logistics will unlock new growth opportunities."