Canada’s Dicom Purchases U.S.-Based Parcel Carrier

MONTREAL and CHICAGO — The Montreal-based Dicom Transportation Group has expanded its regional overnight parcel network into the Northeast U.S. through the acquisition of Eastern Connection.

Eastern Connection, an asset-light provider of business-to-business (B2B) pick-up and delivery services, is one of the largest regional parcel service providers in the Northeast U.S. with a network of 19 terminals and cross-dock locations covering more than 6,800 zip codes from Maine to Ohio, and south to Virginia, according to the U.S.-based investment firm Wind Point Partners, which purchased Dicom in 2014.

Founded in 1983 by Jim Berluti and Ted Kauffman, Eastern Connection has grown to be one of the largest regional express parcel carrier in the Northeast U.S., operating four main business units; ground, priority, same day and logistics; with 19 terminals and cross-dock facilities to handle shipments for B2B accounts. It claims to be the only regional carrier guaranteeing overnight ground delivery within this 500-mile area.

Terms of the deal were not released.

Transport Topics newspaper last year ranked Eastern Connection as the 11th largest package/courier fleet in the U.S. and Canada with estimated revenue of US$45 million. Dicom is ranked as the 92nd largest for-hire carrier in the U.S. and Canada with 2014 revenue of US$230 million.

Eastern Connection will be aligned with the Dicom Express business segment, and will be integrated into the existing Dicom regional parcel network.

The combined service will span Ontario and Quebec; as well as the northeast U.S. states of Connecticut, Maine, Maryland Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, and Virginia.

“When combined with the extensive Canadian coverage of Dicom, this acquisition creates one of the largest parcel networks in the Northeast U.S. and Eastern Canada,” said Scott Dobak, CEO of Dicom. “No other carrier will have faster ground transportation service with direct coverage to as many points. Additionally, despite the expansive existing northeast footprint, Dicom will look for opportunities to organically expand the Eastern Connection services within the U.S. “

According to Ken Nadler, Dicom chief commercial officer, the Eastern Connection acquisition is highly complementary to the Dicom regional parcel network.

“They adjoin at the U.S. and Canadian border, and once integrated, create a large, seamless cross-border network with deep geographic coverage, and extremely fast cross-border transit speeds,” he said. “Additionally, both Dicom and Eastern Connection share a commitment to fast and reliable transport, as well as an ability to provide unique, customized transportation and logistics services molded to specific customer requirements. “

Dicom has offices throughout the U.S. and Canada. It operates three business segments: express, freight and logistics, while providing overnight and second-day parcel, freight transportation, freight management and last mile services throughout the U.S. and Canada.  

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