Armada consolidates its two 3PL subsidiaries under a single branding umbrella

In a move to strengthen its position in the logistics industry, Armada Supply Chain Solutions, Sunset Transportation, and ATEC Logistics have announced their merger. The decision was made after extensive discussions between Armada's CEO, Chris O'Brien, and the two primary owners of Armada, Joe Dominijanni and John Burke.

The combined company will operate under a unified Armada brand and aims to double its current revenue of about $5.7 billion in the next five years.

Armada, known for its specialisation in servicing restaurants, manages inventory on behalf of its clients. It owns four warehouses strategically located in Pennsylvania near Harrisburg, Chicago, Dallas, Atlanta, and has a third-party relationship that gives it access to warehouse capacity in southern California.

Sunset Transportation, a general 3PL with strong ties to the automotive industry, will bring its trucking capacity to the table. This partnership will allow Armada to grow under the Armada banner by utilizing the warehouse space and the capabilities of managing inventory in those facilities.

ATEC Logistics, an ocean and air forwarder with a specialty in Latin America, will add to Armada's international reach, particularly in the restaurant business, where there was an overlap of shared ATEC customers.

The expertise that Armada has in the blended model of 3PL plus warehouses can be combined with the various industries that Sunset is involved in. This merger will create a versatile logistics powerhouse, capable of catering to a wide range of industries.

Chris O'Brien, the newly appointed president of Armada Supply Chain Solutions, knows many of Armada's customers from his time at C.H. Robinson, where he led commercial strategy and scaled high-performing teams.

The combination of 3PL and warehousing services is key to Armada's dominance in the restaurant space. Armada provides a unique service by taking slower-moving goods and planning their distribution to customer outlets, saving money and managing inventory for customers.

The founders of the merging companies, Steve Raich (CEO of Armada Supply Chain Solutions), Jimmy Corcoran (President of Sunset Transportation), and the founder of ATEC Logistics (name not publicly specified), holding executive leadership roles within the combined entity, aim to create a new culture across Armada.

The potential loss of "three unique individual cultures" was a key consideration in the integration of the three companies. The goal is to create a new culture that combines the best aspects of each company, fostering a cohesive and innovative work environment.

Armada manages a small number of carriers (about 100 medium to large carriers) that it uses to service its clients. The legacy Armada Supply Chain Solutions has its entire customer base in one business: restaurants. With the addition of Sunset Transportation and ATEC Logistics, the company aims to expand its reach and serve a wider variety of industries.

This merger is expected to create a dynamic and competitive force in the logistics industry, setting new standards for service and innovation.