TLC Parent Firm Bought
ZEELAND — The parent corporation of Total Logistics Controls is being sold to one of the nation’s largest grocery wholesalers and retailers in a $233 million deal.
Minneapolis-based SUPERVALU Inc. and Milwaukee-based Total Logistics Inc. announced the deal on Wednesday. The acquisition, involving cash and debt assumption, is expected to close within 45 days.
Total Logistics Inc. owns logistics provider Total Logistics Controls LLC in Zeeland, which is commonly known as TLC, and Zero Zone, a North Prairie, Wis., maker of refrigerated and freezer display cases for grocery stores. The acquisition came about when SUPERVALU expressed interest in Total Logistics Inc., executives from both corporations said.
“This is a unique and strategic combination which will provide a great platform for future business development and profitable growth,” Total Logistics Inc. President and CEO William Donovan said. “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.”
Employing more than 2,000 people, TLC provides logistic services nationally that include refrigerated and dry warehousing, transportation, supply-chain management, dedicated third-party facility and operations management, food distribution, bottling and packaging and fulfillment services.
TLC accounts for about 75 percent of Total Logistics Inc.’s annual revenues and operates a network of 30 logistics centers with a combined 57.2 million square feet of refrigerated capacity and 3.2 million square feet of dry storage space, plus a fleet of 435 tractors and 826 dry and refrigerated trailers.
Total Logistics Inc. reported sales of $276.4 million in 2003, the most recent full year for which data is available, and net income of $4.2 million.
“We have been looking for the right partner to obtain critical mass and solidify our commitment to third-party logistics and we have found the perfect fit in Total Logistics Inc.,” SURPERVALU Chairman and CEO Jeff Noddle said. “This company has an impressive position in third-party logistics with its proven management team, a blue-chip customer base and a full suite of integrated service solutions. The combination of SUPERVALU’s scale and supply chain competence together with Total Logistics Inc. and its nationally recognized reputation in third-party logistics will unlock new growth opportunities.”
SUPERVALU supplies 2,500 grocery stores in 48 states with brand name and private label products and operates 1,400 stores of its own in 40 states, including Save-A-Lot discount grocery stores. The company recorded sales of $20.2 billion in its most recent fiscal year that ended last February and net income of $280.1 million.