Chicago, IL —St. George Logistics (STG) has acquired the Extra Express (Extra) division of Dicom Transportation Group (Dicom). The acquisition allows STG to complement its full array of drayage, warehousing, container freight station (CFS), and intermodal transportation capabilities with comprehensive solutions for last mile delivery.
STG is North America’s largest provider of outsourced CFS services and a leading provider of value-added warehousing and distribution services. Dicom is one of the largest providers of regional, expedited ground transportation services in North America. Both companies are majority-owned by Wind Point.
Founded in 1982, the Extra Express division of Dicom provides comprehensive warehousing and related delivery services to blue-chip accounts throughout California. Extra operates four warehouse facilities and maintains access to a network of more than 300 delivery vehicles.
STG plans to leverage Extra’s capabilities to introduce local last mile delivery services across its network, which includes 32 facilities totaling over five million square feet of space. STG will launch last mile delivery services in California in May 2017 and plans to establish last mile services at other port and inland facilities later this year.
Wind Point acquired STG in July 2016 in partnership with logistics executives Chris Jamroz and Hessel Verhage. Extra is STG’s fourth add-on acquisition since Wind Point established the platform ten months ago.
“The last mile delivery segment is a critical component of the import supply chain and our customers spend over $100 million annually on third party transportation providers who visit our facilities, pick up products, and make individual deliveries to the final recipient,” said Jamroz. “The acquisition of Extra will allow us to relieve our customers of a substantial operational burden by offering a closed-loop solution that is faster, cheaper, and more technologically integrated with our other services.”
Konrad Salaber, Principal with Wind Point, commented, “This is an exciting transaction for both STG and Dicom. STG will add last mile as a critical component to its full line of import/export services, which was identified as a core strategic priority at the time of our acquisition of STG. Dicom, meanwhile, has the opportunity to focus its resources on its core footprint, which has emerged as one of the largest regional ground transportation networks in North America.”
Scott Dobak, CEO of Dicom, stated, “Extra is an exceptional business with an impressive track record of growth. However, given Dicom’s success in establishing one of the continent’s leading regional ground networks in the eastern half of North America, Extra’s operations in California have become non-core to our strategy. We are thrilled that the Extra management team will have the opportunity to fulfill its growth ambitions as part of the STG platform.”