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Saddle Creek acquires logistics company

By purchasing ServiceCraft, Saddle Creek joins the ranks of contract packagers creating integrated service offerings as CPG companies consolidate supply chains.

Product manufacturers are continuing to consolidate their supply chains, and some contract packagers are responding by expanding both their scope of services and the geographic reach. The contract packagers’ goal is to meet the customer need for integrated outsourcing services.

The Maddux NewsWire reports that the latest to join this trend is Saddle Creek Corp. The Lakeland, FL-based integrated warehousing, transportation, and contract packaging services company has acquired ServiceCraft Logistics, a third-party logistics (3PL) company in Buena Park, CA.

With the merger, Saddle Creek gains greater geographic coverage for its warehousing operations and an expanded transportation offering.

Saddle Creek is the latest example of a contract packager attempting to meet customer needs for integrated supply chains by acquiring a logistics company. The merger is valuable because it provides Saddle Creek with the ability to combine packaging, warehousing, transportation, and now logistics services into an integrated service offering that creates added value for consumer packaged goods companies.

Benjamin Gordon, managing director of BG Strategic Advisors Inc., will discuss the state of mergers and acquisitions in the contract packaging industry in detail in a presentation at the Contract Packaging Association’s annual meeting Feb. 18-21, 2010, in Naples, FL.

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