Cardinal Logistics brings NRX Logistics into the fold, to expand last-mile operations

Taking a major step to expand its last-mile home delivery capabilities, Concord, NC-based Cardinal Logistics Management Corporation, a provider of freight transportation and logistics services, announced today it has acquired Stoughton, Mass.-based last-mile delivery specialist NRX Logistics.

A purchase price for the transaction was not disclosed.

NRX was founded in 1989 and is widely known for making high-quality, high-touch deliveries, throughout the United states, for leading furniture, appliance, bedding, and fitness retailers. 

Cardinal officials said that by bringing NRX into the fold, it will double the number of last-mile deliveries it does on an annual basis, from 550,000 to 1.1 million, as well as majorly augment its delivery proficiency across various sectors, too.

“This acquisition is part of Cardinal’s growing commitment to serving the last-mile space and providing the marketplace with a full-service delivery alternative for every type of big and bulky product,” said Cardinal Chairman Vin McLoughlin in a statement. “In addition to complementing the kinds of heavy goods we already deliver, it significantly expands our ability to perform complex last-mile services like white glove, product assembly and installation, all of which are must-haves for many online retailers.”

And Will O’Shea, Cardinal Senior Vice President, told LM that NRX is a company Cardinal has known and admired for a very long time.

“With any of these deals, culture is important and the shared values in how you look at the customers’ business and how you service customers is absolutely critical,” he said. “We looked at several opportunities over the course of the last year, and we are really excited about the NRX team and their commitment to providing excellent customer service. It fits in nicely with our DNA. We provide high-quality, private fleet alternatives for companies that are really looking to protect their brands, and when we take a look at what NRX brings to the table, it fits in perfectly.”

The primary customers historically served by NRX have been furniture retailers, appliance retailers, appliance manufacturers, and bedding retailers.

Of the 550,000 annual last-mile deliveries handled by Cardinal prior to this acquisition, O’Shea said that the majority of those deliveries are for cabinets, doors, and windows.

“This is the logical expansion for us, to expand into other heavy duty goods—such as furniture, appliance, bedding, and fitness equipment—that is what NRX brings to the table,” he said.

In terms of how NRX will be integrated into Cardinal, O’Shea said that NRX President Geoff Chasin and NRX VP of Operations Dave Grose will be coming over to Cardinal along with the rest of the NRX team. And he added a major driver for this deal was to acquire the talent and the resources NRX had to provide a platform for last-mile growth.

“They have a strong relationship with nearly 200 motor carriers that excel in providing this [last-mile] service,” he said. “This is not an employee-based model. We use relationships with motor carriers that will be able to provide the flexibility for us to grow this in the 200 markets we operate in today. NRX has been very selective in the past, in terms of what areas they have operated in, and with our national footprint we believe it is a real strong combination that provides NRX’ customers a consistent level of service in all markets throughout the U.S., which is really important for retailers and e-commerce companies that are looking to have a strong last-mile provider.”

Cardinal Chairman Vin McLoughlin highlighted the strong company culture within both Cardinal and NRX as a key component and driver for this acquisition.

“A lot of us [at Cardinal] were trained at Ryder, and we built J.B. Hunt Dedicated nearly 30 years ago,” he said. “And for the last 23 years we have tried to make deliveries faster and more flexible, have great technology, treat people well, and keep them for decades. That has worked out pretty well for us on the dedicated side. But in looking at NRX, the trucking business has nothing to do with trucks; it is all about people. Geoff Chasin is a really classy guy that has lived and breathed this business for a long while. He is the founder and past president of the National Home Delivery Association. When you listen to him talk about his customers, you can tell he is passionate, and what he is about is what we are all about, so we are really pleased with him, and he has some great operators under him. We are not here to fix anything. NRX is a great company. We have some things in our infrastructure that can help NRX grow, where it could not before, from a capital investment or a risk basis. We are excited about this as a growth platform.”

O’Shea noted that prior to this deal, while NRX did have the ability to establish a national delivery footprint, it was predominantly in the Northeast, Midwest, and Southeast regions of the country.

And he added that when looking at both companies, with Cardinal’s national footprint throughout 200 U.S. markets, Cardinal has the resources to help NRX grow, as NRX lacked the bandwidth in the past.

“All of us at NRX are looking forward to being part of Cardinal. We share a common philosophy of running a business – including making sure that we’re an agile, hands-on and highly responsive partner for every client we serve—as well as a commitment to putting each client’s last mile first,” said NRX’ Chasin in a statement.

Looking ahead, Cardinal’s O’Shea said that the company will not rule out similar types of deals like this one, as acquisition is a part of Cardinal’s story, and it is something the company wants to do smartly, with the right companies that match its profile, whether it be in dedicated, last-mile or other logistics segments that make sense for it.  

That was echoed by McLaughlin, whom pointed out that in early 2019 H.I.G. Capital became Cardinal’s new private equity sponsor, with H.I.G. lining up acquisition opportunities for Cardinal to vet, at a more frequent rate than over the prior 23 years Cardinal has been in business.

“H.I.G. wants to buy good companies that garner profitable growth, and this is a real exciting time in our company’s history,” he said.