Transplace acquires LMS, expands presence in chemical and industrial manufacturing verticals

Non asset-based third-party logistics (3PL) services provider Transplace said yesterday it has acquired Logistics Management Solutions (LMS), a St. Louis, Mo.-based non asset-based 3PL for serving shippers in the chemical and industrial manufacturing sectors.

Financial terms of the transaction were not disclosed.

LMS was established in 1996 and providers advanced technology and transportation management services, including freight management solutions and transportation services for various Fortune 500 companies. LMS CEO Dennis Schoemehl will serve as an advisor to Transplace CEO Tom Sanderson and LMS President and COO Greg Umstead will remain in his role and run the LMS business as a key member of the Transplace leadership team, according to Transplace officials.

“Transplace is committed to growth, both organically and through strategic acquisitions, so we’re continuously looking for acquisition candidates,” Sanderson told LM. “Over the last few years, Transplace acquired SCO Logistics, Celtic International and Torus Freight Systems in order to broaden our vertical experience, strengthen intermodal capabilities and expand geographical reach. Those acquisitions also facilitated organic growth by allowing us to offer additional services to existing customers and by strengthening our team. We’ll continue to look for companies that will help us grow Transplace and build a competitive advantage for our company and our customers.”

In terms of what made LMS attractive to Transplace, Sanderson cited how LMS is a 3PL that has tremendous talent, a blue-chip customer base, and has values that are consistent with Transplace’s core values.

“It is a growing and profitable business focused on thrilling its customer through process and technology excellence,” he explained. “LMS strengthens our current position in the chemical and industrial manufacturing verticals and has offices in areas that allow us to serve customers and recruit talent.”

Bringing the LMS team on board strengthens the Transplace management team and adds significant expertise in supply chain issues facing the chemical and industrial manufacturing industries, according to Sanderson. And expanding its presence in the Northeast and establishing a presence in St. Louis will allow Transplace to serve customers better and attract the talent required to better serve our customers.

Sanderson said Transplace expects to add several LMS customers to its Customer Advisory Board, facilitating collaboration with its current accounts.

When asked what specifically what LMS brings to Transplace in terms of service offerings or other things not currently part of the Transplace service portfolio, Sanderson stated how LMS expands Transplace’s service offering in the chemical vertical as well as specific offerings, such as bulk, rail carload and LTL. LMS has excellent capabilities and services in the area of procurement, carrier contracting and relationships, and technology capabilities – all areas that are consistent with Transplace’s solutions and focus areas.
He also said that LMS brings a strong and diverse customer based and that adding LMS’s knowledgeable, experienced employees brings Transplace to 1,000 employees.

“Joining Transplace positions us to better serve our current customers, allowing us to take advantage of Transplace’s experience and scale along with its award-winning technology and Lean Six Sigma-based processes,” said LMS CEO Schoemehl. “It is a privilege to have the opportunity to work with industry leaders such as Tom Sanderson, Frank McGuigan and George Abernathy as they continue to grow Transplace across geographical areas and industry verticals.”