The largest retail furniture chain in the U.S. recently brokered a deal to expand its fleet operations.
Ashley Furniture concluded negotiations with Wilson Logistics to purchase assets on Nov. 22, with parties anticipating the buy will pass regulatory scrutiny by year’s end. Although the details of the transaction have not been released to the public, Wilson Logistics reportedly possesses a fleet that exceeds 800 trucks and 2,000 trailers.
“This acquisition is expected to expand (Ashley Distribution Services) brokerage and distribution operations in the western United States,” an Ashley Furniture spokesperson reportedly said. “We are excited to welcome members of the Wilson team as we continue to service existing customers and expand upon the strong legacy established by Wilson.”
The family-owned organization services the Western U.S. and was founded 40 years ago as Wil-Trans. The Missouri-based operation steadily expanded its Pacific Northwest footprint beginning in 2014. Over the last seven years, Wilson Logistics acquired smaller companies that reportedly include Jim Palmer Trucking, O&S Trucking, RJ’s Transportation, Haney Truck Line, and Market Transport.
Although Ashley Furniture officials have not disclosed which assets it’s purchasing, the conventional wisdom is it will add to its Pacific Northwest truck and trailer holdings. That’s largely because the purchase is being orchestrated by Ashley Pacific Northwest, a regional unit of Ashley Distribution Services. Both outfits service the transportation needs of Ashley Furniture. But perhaps most notably, Wilson Logistics already hauled products for Ashley Furniture in California, Idaho, Montana, and Washington State.
The asset acquisition provides the retailer with increased freight hauling security during a time of supply chain dysfunction. However, Ashley Furniture CEO Todd Wanek indicated the corporation struggles to fill out its workforce with qualified CDL holders.
“We’re having a hard time hiring truckers,” Wanek reportedly said. “The shortage is worse than it was. Every part of the supply chain is a weak point right now.”
Ashley Furniture established Ashley Distribution Services in 1974 to serve as a privately-owned transportation wing. The delivery and logistics operation has grown to a reported 900 tractors and 3,700 trailers. The furniture giant’s operations have also increased dramatically, and it reportedly holds the largest market share in the country. In 2019, Ashley Furniture generated more than $4.9 billion in revenue, outpacing IKEA at $3.3 billion and Williams-Sonoma at $3.2 billion.
Sources: ttnews.com, freightwaves.com
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