JACKSONVILLE, FL/DALLAS, TX (October 26, 2016) - Two leading agent-based, third-party providers of transportation and logistics management services, Sunteck Transport Group, headquartered in Jacksonville, FL, and TTS, LLC, headquartered in Dallas, TX, today announced the two companies agreed to merge and will operate under Sunteck / TTS Holdings, LLC. The merger will create one of the largest, multimodal, agent-based freight management service providers in the U.S., approaching $1 billion in gross revenue, and managing more than 700,000 intermodal, truckload and less-than-truckload shipments annually. Ken Forster, the current CEO of Sunteck will serve as the President and CEO of Sunteck / TTS Holdings, LLC, and Andy Cole, the current President and CEO of TTS, will serve as Chairman of the Board.
"This is an exciting moment as these two companies will become one and establish a powerful platform, offering expanded operations, capacity relationships and technology capabilities to our agents, carriers, and customers. The merger allows us to leverage best practices across our combined operations and provide optimal solutions for our agents and customers," said Ken Forster. "The merged companies reflect an increased level of commitment to our agent business model, enhancing the level of innovative, customized solutions for the shipper community. The resulting company and our agents will be well-positioned to lead the industry in serving shippers facing an increasingly complex regulatory, technological, and economic environment."
As shippers require more complex and robust data solutions, increased size and leverage within the logistics sector and access to the most leading-edge technology will become more and more important. Smaller 3PLs, or agent-based models, will need to leverage the increased buying power and resources of companies like Sunteck / TTS Holdings, LLC.
"We believe the combined entity will be the platform of choice for agents and 3PLs looking for industry-leading technology, multimodal solutions, and an extensive network of both in-house and outsourced capacity," said 30-year industry veteran, Andy Cole.
Through this merger, the entity's 200+ agents and wide-ranging customer base will be in a better position to source more capacity through a combined network of more than 30,000 carriers. In addition to the strong non-asset capabilities, Sunteck / TTS Holdings, LLC will also have a collective 2,000 trucks in its direct asset-light capacity divisions. TTS' direct rail intermodal program, with access to more than 200,000 pieces of equipment, will be enhanced by Sunteck's large intermodal drayage network. This access to capacity will become critical as future driver shortages and industry consolidation continues, enabling the new entity's agents to better service their customers and provide long-term service commitments.
"Since our founding in 2006, TTS has been committed to the agent-centric model because we believe agents are highly motivated to discover and utilize better ways to provide unique solutions to customers," said Cole. "For this reason, we became an Intermodal Marketing Company to give our agents a better ability to optimize shipments and move between modes dynamically. This merger with Sunteck only furthers our goals for agent success, with increased potential for expanded service offerings for our agents to utilize expanded solutions for their clients."
Stifel served as the financial advisor for TTS on the merger.