Canadian transport provider, Day & Ross Freight, which provides dedicated inbound services for the automotive industry across the country, has entered the US market with the buyout of REI Logistics and Korten Quality Systems, two companies run by CEO and founder, Chester Zochowski and based in Michigan. The company would not reveal how much the buyout was worth.
REI Logistics provides milkrun services for inbound parts shipments to automotive manufacturers in the upper mid-west region of the US. Korten Quality Systems provides supporting services including parts refurbishment, light manufacturing, kitting and product assembly, as well as warehousing. Those operations will now operate as Day & Ross Dedicated Logistics USA, and will be run by Shawn McMahon (pictured), president of Day & Ross Dedicated Logistics in Canada.
Mark Osborne, vice-president of human resources at Day & Ross, told Automotive Logistics it was the first US acquisition for the company’s Dedicated Logistics Division and fell in with the business growth strategy established by the company’s CEO, Bill Doherty.
“The president of Dedicated Logistics, Shawn McMahon, has had a business relationship with REI for several years through common customer relationships in the US and Canada,” Osborne explained. “This was a natural fit for Dedicated Logistics because the two companies share similar business relationships and synergies in the automotive sector.”
Referring to Korton Quality Services, Osborne said the takeover offered an opportunity to provide value-added services to its customers and suppliers.
“We are excited about the growth potential this opportunity creates for our Dedicated Logistics division in the US,” he said, adding that Day & Ross was retaining all employees.
Day & Ross controls 38 terminals across all 10 Canadian provinces, providing comprehensive less-than-truckload services to a range of sectors including automotive. Around 70% of business in the Dedicated Logistics Division is taken up with automotive customers.