Delmar Purchases Majority Stake in Islandwide Logistics
news | Aug 17, 2015
Delmar International Concludes Purchase of Majority Stake in Ontario-Based Islandwide Logistics
MONTREAL, QUEBEC--(Marketwired - Aug. 17, 2015) - Delmar International Inc., one of the largest privately held freight forwarders in Canada, has announced the purchase of a majority stake in Ontario-based Islandwide Logistics, which provides both asset based transportation and third party logistics solutions throughout Canada and the United States.
Robert H. Cutler, President and CEO of The Delmar Group (www.delmarcargo.com) and Islandwide Logistics Chief Financial Officer, Sar Mikhail, hailed the agreement as "win win" for both parties, the industry and the clients they respectively serve.
Mr. Cutler noted that on the eve of the company's 50th anniversary it continues to grow and expand. Mr. Cutler said that the new acquisition has been rebranded Delmar Logistics Ltd. and becomes a subsidiary of Delmar International Inc. Canada and its largest asset based acquisition to date.
Under the new arrangement San Mikhail becomes president of Delmar Logistics Ltd., with his brother Sar as vice-president of transportation and Rob Seymour as vice-president of operations and warehousing. Mr. Seymour will assume this role in the New Year.
We are ecstatic on becoming part of the Delmar group of companies," stated San Mikhail. "We could not have found a better relationship that fits all of our needs. Delmar brings such an extensive customer base while we bring the expertise in third party logistics and asset based transportation, the possibilities and synergies are wonderful. We are also family owned like Delmar and even though they are much larger than us, the personalities and atmospheres are so much alike. From our first meeting, we knew that integrity and ethics were top values for Delmar, which made us extremely comfortable."
Delmar Logistics Inc. inherits some 90 employees operating out of a 130,000 square foot facility in Mississauga and a 220,000 square foot facility in Calgary. Both are fully functional distribution facilities with a current multi-customer base. "Operationally we will still have daily responsibility, but with significantly more back office substance behind the scenes," said Sar Mikhail. "Robert is a huge game changer for us and his vision and energy is incredible. The ability to work with Robert and his team is the most incredible opportunity that we could have ever asked for."
Mr. Cutler said that Delmar Logistics has already signed contracts with several major companies.
The Islandwide acquisition represents a very serious step forward for Delmar and it will help us push further re: proof of concept," said Mr. Cutler. "We have been carefully monitoring our potential to move vertically into the asset based SCM (Supply Chain Management) world: vehicles, warehouses, distribution centers, cargo management systems, and all the bells and whistles that go with it. It was simply a question of timing, not only for us, but also for automation, robotics, and of course software. I feel very strongly that our industry and the science of supply chain is currently undergoing a major evolutionary change at this very moment. This isn't much different from how microchips changed personal computing or how the Internet changed communications and the entertainment industry. Mobile technology (hardware specifically) now has the potential to help us take a huge leap forward, making what we do today look antiquated in just a few short years from now."
About Delmar International
Established in 1965 in Montreal, Quebec, Canada, Delmar International Inc. has evolved into a global player and industry leader, offering customs brokerage, freight forwarding and supply chain logistics solutions to thousands of clients worldwide. The Delmar Group operates globally, employs just over one thousand people in 48 cities, including the United States, Canada, China, Brazil, Vietnam, Cambodia, Taiwan, The Philippines, and Mexico and has facilities at almost every major gateway in North America. Diversification of service offerings and vigorous expansion, including many acquisitions, has led to significant growth for the Delmar Group in recent years. Its world headquarters remain in Canada in Lachine, Quebec.
About Delmar Logistics Inc. (Islandwide Logistics)
Established in 2002 by Sar and San Mikhail, Islandwide Logistics began as a small third party ground brokerage company. Realizing that they had a knack for transportation and customer service, the brothers decided to go into asset based trucking and expand their logistics services. They started out with a handful of trucks, providing dedicated services throughout the province of Ontario. Islandwide grew to over 15 owned and operated trucks offering dedicated, LTL (a type of ground freight transportation that combines shipments from multiple customers) and FTL (full truckload) services throughout Ontario. By utilizing its earlier brokerage experience and relationships that were built with a large carrier base, Islandwide gained the ability to move freight anywhere in North America. In August 2015 it became a subsidiary of Delmar International Inc.
Delmar International Inc.