Ashley Furniture announced to FreightWaves that it had reached an agreement with asset-based logistics provider Wilson Logistics to purchase certain assets. The agreement was signed on November 22 by Ashley Distribution Services (ADS) associate.
The financial terms of the purchase were not disclosed. The transaction is still awaiting regulatory approval, but it is expected to be completed by year-end.
Springfield, Missouri, Wilson Logistics operates a truckload fleet of approximately 1,200 vehicles that serves the western United States. Wil-Trans began more than 40 years ago and has since acquired Jim Palmer Trucking, O&S Trucking, RJ’s Transportation, Haney Truck Line, and most recently Market Transport to expand its geography and service capabilities, particularly in the Pacific Northwest.
The company had 175 vehicles when the round of purchases began in 2014. It presently operates many locations that provide comprehensive TL, heavy-haul, and high-cube freight services and yard management. The firm also runs dedicated fleets and offers power-only services.
According to the release, the deal will “grow ADS’ brokerage and distribution capabilities in the western United States.” “We are delighted to welcome members of the Wilson team as we continue to serve our existing clients and build on Wilson’s outstanding legacy.”
Ashley Furniture Industries, based in Wisconsin, is the world’s largest home furnishings producer, with over 20,000 shops in 155 countries. The company is in charge of the entire process from design through fulfillment. Ashley HomeStore, the company’s retail division, has over 1,070 outlets in 60 countries.
Vertical integration is one method for reducing the challenges of a clogged supply chain.
In early November, American Eagle Outfitters (NYSE: AEO) paid $350 million for third-party fulfillment company Quiet Logistics. Quiet Logistics will be able to continue serving its other customers in addition to AEO as a result of the agreement. This followed AEO’s acquisition of Seattle-based parcel delivery startup AirTerra in August.
