Dive Brief:
- Behnke Dedicated & Logistics of Battle Creek, Michigan has acquired AG Freight of Piedmont, South Carolina, according to an announcement by mergers and acquisitions firm Calder Capital. Terms of the deal were not disclosed.
- Behnke Dedicated & Logistics is a third-party logistics provider with dedicated transportation, warehousing, distribution and supply chain solutions services. AG Freight offers trucking and brokerage services, including truckload, LTL, drayage and expedited transportation.
- Ben Behnke, CEO of Behnke Dedicated & Logistics, said the purchase gives his company “a real foothold in the Southeast.” It also provides access to the nearby Greenville market’s manufacturing base and Inland Port Greer.
Dive Insight:
Behnke Dedicated & Logistics is a fourth-generation, family-owned business that had been seeking a “strategic transportation and logistics acquisition” to expand into South Carolina or other nearby locations, the release said. Calder Capital said a letter of intent was executed in March. The transaction closed on June 24, a spokesperson for the consultancy said in an email to Trucking Dive.
Ben Behnke said in an email to Trucking Dive that his company’s fleet is “approacing 70 power units in Michigan.” AG Freight had 30 power units and 30 drivers as of March 31, per Federal Motor Carrier Safety Administration records.
Behnke said the addition of AG Freight “is a natural extension of what we already do well.”
“Garrett [Boulware] built a solid business with good customers and good drivers, and our job now is to give it more resources and let it grow,” Behnke said.
AG Freight was founded during the COVID-19 pandemic. Boulware had grown the company over the past few years but decided to pursue other interests and sought to exit the business, the release said.
AG Logistics is located near Inland Port Greer, which recently completed a $55 million expansion to improve its intermodal capabilities and connectivity to the Port of Charleston. The improvements allows the intermodal facility to handle 300,000 rail lifts annually and meet projected demand through 2040, the South Carolina Ports Authority said.
Patrick Robey, a Calder Capital advisor who worked with Behnke Dedicated & Logistics during the transaction, said the deal required patience and trust between both sides.
“I believe Behnke Logistics is the right strategic buyer, with valuable transportation experience which will support AG Freight’s growth through its next chapter,” Robey said.
Merger and acquisition activity in the transportation and logistics sector stabilized in Q2, a quarterly market recap from PMCF Investment Banking said. The consultancy said there were 28 closed transactions in Q2, matching the number of deals the same period a year ago.
The PMCF report noted strategic buyers were the most active. Earnings from improved spot rates increased available capital for strategic mergers and acquisitions, the investment bank said.
“Structural cost and trade advantages enable U.S. acquirers to maintain steady deal activity, outperforming softer global M&A markets,” PMCF said.
