MODE Transportation is a leading North American private third-party logistics provider based in Dallas, Texas. They announced that it has acquired Avenger Logistics. That company is a Chattanooga, Tennessee-based freight brokerage.
MODE Transportation Financial Terms Deal
In fact, the financial terms of the deal not available. Moreover, investment bankers at Capstone Headwaters brought Avenger to market.
“Part of the MODE family, we are excited to have Avenger, it is important to our growth strategy. Also because of Avenger’s strong culture of high-level customer service,” said Lance Malesh, MODE Transportation’s president and chief executive officer.
Avenger Logistics History
Founded in 2015, Avenger Logistics was founding by Don Godsey. The company did finish 2020 with roughly $80 million in gross revenue. Its roots as an intermodal company founded in 1989 are what the company has. The company was bought by HUB Group in 2011 and expanding its service offerings. Then it became 2018 to York Capital Management. This is a private equity firm. The company and agent-based freight brokerage SunTeckTTS merged in November 2019 to form an entity with annual revenues exceeding $2 billion.
MODE Transportation: Cradle-to-Grave Brokerage
MODE has a largely agent-based freight brokerage network that is why the deal is notable. It is locating in relatively decentral offices and the company has more than 200 employees. They pass a portion of their gross margin up to corporate. Moreover, Avenger is a traditional, central, Chattanooga-style cradle-to-grave brokerage.
President at Avenger Logistics, Jason Roberts, said in an interview that Avenger’s in-house operation is going to an aggressive volume and revenue growth during tight markets. It could serve as an effective hedge for an agent-based model. This is, in turn, features low operating costs that insulate the business against freight market downturns.
Enterprise Operations Division
Similar to us, MODE does have an enterprise operations division,” Roberts explained, “this company has been able to bring the business in-house through agent acquisitions. Moreover, the company is considering growth-oriented. It wants to offer diversification of service in the marketplace. We do provide that.”
