PS Logistics is adding another established flatbed operator to its growing transportation network as it continues to expand its presence in the southeastern United States with the acquisition of Roane Transportation Services and its affiliated businesses.

The deal was done through Loudon County Trucking, a PS Logistics subsidiary. The deal includes Roane's trucking operations, as well as its logistics and leasing businesses. Financial terms of the deal were not disclosed.

Roane, based in Rockwood, Tennessee, hauls building materials and electrical products across the Southeast and Midwest. It is powered by 189 power units and is supported by a mix of over 170 company and third-party drivers.

The company's network includes its headquarters in Rockwood, and terminals in Memphis, Tenn., and El Paso, Texas. Its affiliate, Roane Logistics, also provides warehousing and freight brokerage services, expanding the acquisition's scope beyond traditional trucking operations.

Strengthening a key industrial region

The acquisition provides PS Logistics an opportunity to strengthen its coverage in East Tennessee, an area of strategic importance to the aluminum manufacturing industry.

Houston Vaughn, president of the trucking division of PS Logistics, said Roane’s addition will “enhance our regional footprint and better enable us to service our current customers, as well as build relationships with new customers.”

Roane's current identity and management structure will be retained in the merger. The company will still operate under the Roane name as a division of Loudon County Trucking with co-founder Steve Kennedy still overseeing its day-to-day operations.

The deal would enable employees and customers to retain the local leadership, company culture and service they’re accustomed to, Kennedy said. At the same time, becoming part of PS Logistics will allow access to greater resources and operational scale and provide opportunities for additional investment in employees and business operations.”

Flatbed demand remains strong in niche markets

The acquisition is taking place as certain segments of the flatbed transportation market continue to perform well, especially those related to infrastructure and data center construction.

Recent results from freight brokerage Landstar System (NASDAQ: LSTR) are an example of this momentum. When the company reported third-quarter results last week, it cited “especially strong” demand for heavy-haul transportation.

Revenue in the flatbed segment also rose 34% year-over-year in the quarter. Loads increased 4% and revenue per load increased 29%, reflecting the strength of pricing and demand across this specialty activity.

Flatbed is one of the areas of continued growth for PS Logistics and these market dynamics are an important part of it.”

A growing transportation group, built through acquisitions

PS Logistics is an asset based transportation and non-asset solutions provider of freight brokerage, third-party logistics and managed transportation services headquartered in Birmingham, Ala.

Today, its operations include more than 5,000 trucks and 9,800 trailers from 65 locations throughout the eastern United States.

Since 2016, the company has been pursuing an acquisition-led growth strategy, with a particular focus on family-owned flatbed trucking and logistics businesses. It has acquired 32 trucking companies and five non-asset logistics businesses as part of its expansion program.

Its previous deals include the addition of Birmingham-based Buddy Moore Trucking two years ago, which brought more than 500 power units to the group.

Later, PS Logistics added to its specialized equipment capabilities with the acquisition of the flatbed segment of Kenly, North Carolina-based ELS, a carrier. That deal covered 90 tractors and more than 240 over-length trailers.

The acquisition of Roane is consistent with a strategy of integrating mature regional players into a broader transportation network, while preserving aspects of current operations and local management.

Flatbed Trucking Industry Undergoes Consolidation

The deal is the latest sign of increased consolidation in the U.S. trucking industry, especially among specialty carriers that have deep relationships with customers in certain regions.

The addition of Roane’s fleet, workforce, terminals and complementary logistics activities further strengthens PS Logistics’ position in a strategically important industrial region.

The deal also comes amid strong demand in niche flatbed markets like heavy-haul transportation and data center construction. For the Alabama-based company, the acquisition of Roane is a chance to combine regional know-how with the resources of a much larger transportation platform.