Source Logistics acquires Fulfillment Corporation of America to expand its North American platform
- Central Valley Fund II provides $6.5M in debt and equity financing
- Source’s network expanded 7 warehouse locations provides a national presence
- The newly combined companies announced an 8th location in Chicago, scheduled to open Spring 2013
Los Angeles, CA and Portland, OR, December 20, 2012 – Source Logistics (“SL”), a California based leading 3PL logistics provider, and Fulfillment Corporation of America (“FCA”), a Oregon based fulfillment and digital deployment provider catering to some of the largest U.S. consumer product, financial service and healthcare companies, today announced that both companies have agreed to a transaction and a business combination.
The complementary combination of FCA’s fulfillment platform and SL’s national presence, create a broader portfolio of supply-chain solutions that can be delivered nationally through SL’s network in the U.S. The combined product portfolio and enhanced network will enable SL to double its addressable market in the U.S.
“FCA is a well-run company with a strong service model, led by its proprietary 3e® software, and an excellent customer base in the world’s largest logistics market,” said Marcelo Sada, SL’s CEO. “Because our products are complementary, we’ll go to market with one of the broadest offerings in the industry. That creates strong growth opportunities for both SL and FCA, and gives customers one-stop access.
“Strategically, it’s a great fit,” Sada added. “This is another big step toward our goal of expanding our presence in key U.S. cities. The transaction clearly supports our 2013-2015 growth and profitability targets, and meets all of our return-on-investment criteria for creating shareholder value.”
“SL and FCA share a common culture. We admire the in-depth industry expertise and enthusiasm of the FCA team and their excellent long-term relationship with customers and industry advisers,” Sada said. “We will continue FCA’s successful business model with its customers and the FCA executive team will continue to lead and drive the successful development of the new business unit.”
The Central Valley Fund II (“CVF”) provided $6.5M in debt and equity financing to complete the transaction. “It is a pleasure to support Marcelo and his team to purchase FCA,” said José Blanco, CVF Partner. “We have supported SL management in their rapid expansion since 2008 and believe they have a unique opportunity to continue to build a first-class national 3PL logistics firm.”
About Source Logistics
Source Logistics was founded in 1999 to provide third-party logistic solutions for the storage and freight handling of consumer product and apparel manufacturers. The Los Angeles based company utilizes its network of warehouses and a range of value-added services to permit its customers to increasingly expand their sales levels throughout the U.S. For more information, please visit www.sourcelogistics.net.
About Fulfillment Corporation of America
Fulfillment Corporation of America is located in Beaverton, Oregon and provides fulfillment, logistics and digital deployment services with regional and national consumer product, financial services and healthcare businesses. Tracing its origins back to a direct mailing service company in 1979 the company maintains warehouse operations in Beaverton, OR and Brea, CA For more information, please visit http://www.fulfillmentcorp.com/
About The Central Valley Fund
The Central Valley Fund was established by the principals of CVF Capital Partners to finance later stage growth through mezzanine and preferred equity investments. CVF Capital Partners manages over $175M in committed and invested capital. The fund has offices in Davis, CA and Fresno, CA. It is focused on making investments in California's Central Valley and throughout the Western states. For more information, please visit www.centralvalleyfund.com.
For more information contact:
CVF Capital Partners
The Central Valley Fund, LP
530-757-7004 ext. 227