Fast-growing Dicom Transportation Group has expanded into the Northeast USA with the takeover of regional carrier Eastern Connection, its fourth acquisition in the last few months.
Montreal-based Dicom, which describes itself as “a leading provider of business-to-business expedited transportation services”, said the acquisition, for an undisclosed sum, has expanded its regional overnight parcel network into the Northeast US. It had previously moved into southern and western US states through takeovers.
Eastern Connection, an asset-light provider of B2B pick-up and delivery services, is one of the largest regional parcel service providers in the Northeast U.S. with a network of 19 terminals and cross-dock locations covering more than 6,800 zip codes from Maine to Ohio, and south to Virginia. The company is the only regional carrier guaranteeing overnight ground delivery within this 500-mile area.
The US parcel carrier will be aligned with the Dicom Express business segment, and will be integrated into the existing Dicom regional parcel network. The combined service will span Ontario and Quebec; as well as the northeast U.S. states of Connecticut, Maine, Maryland Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, and Virginia.
"When combined with the extensive Canadian coverage of Dicom, this acquisition creates one of the largest parcel networks in the Northeast U.S. and Eastern Canada," said Scott Dobak, CEO of Dicom. "No other carrier will have faster ground transportation service with direct coverage to as many points. Additionally, despite the expansive existing northeast footprint, Dicom will look for opportunities to organically expand the Eastern Connection services within the U.S."
Ken Nadler, Dicom Chief Commercial Officer, added: "The Eastern Connection acquisition is highly complementary to the Dicom Regional Parcel network. They adjoin at the U.S. and Canadian border, and once integrated, create a large, seamless cross-border network with deep geographic coverage, and extremely fast cross-border transit speeds. Additionally, both Dicom and Eastern Connection share a commitment to fast and reliable transport, as well as an ability to provide unique, customized transportation and logistics services molded to specific customer requirements."
Founded in 1983 by Jim Berluti and Ted Kauffman, Eastern Connection has grown to be one of the largest regional express parcel carrier in the Northeast U.S. The company operates four main business units: Ground, Priority, Same Day and Logistics. The company utilizes 19 terminals and cross-dock facilities to handle shipments for B2B accounts.
Dicom is a transportation and logistics company headquartered in Montreal with offices throughout the U.S. and Canada. Dicom operates three business segments: Express, Freight and Logistics. Services provided include overnight and second-day parcel, freight transportation, freight management and last mile services throughout the U.S. and Canada.
Over the last few months, the Canadian firm has expanded with several acquisitions. In July, it took over Los Angeles-based Extra Express, which provides final-mile delivery services in the Western U.S. (California, Colorado and Nevada). In June, it had acquired Orbis Logistics, based in Indianapolis, which operates in various Southeast and Midwest states, and in April it had bought Ontario-based Modern Forwarding.
The acquisitions follow the takeover of a majority stake in Dicom by Chicago-based private equity firm Wind Point Partners in early 2014 with a plan for rapid expansion through acquisitions. The newly-appointed management team and directors included former top executives from RoadRunner, Dynamex and Purolator.
