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RPM Freight Acquires Dealers Choice Auto Transport, Expanding Vehicle Transportation Services

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RPM Freight Expands Vehicle Transportation Footprint with Acquisition of Dealers Choice Auto Transport

RPM Freight, a leading provider of innovative freight solutions specializing in truckload transportation and logistics services, has significantly expanded its presence in the vehicle transport sector through the acquisition of Dealers Choice Auto Transport (DCAT). This strategic move underscores RPM’s commitment to diversifying its service offerings and capitalizing on the growing demand for specialized auto shipping. The deal, announced recently, brings a substantial player in the dealer-focused auto transport market under the RPM umbrella, promising enhanced capabilities and broader reach for both companies.

Who are RPM Freight and Dealers Choice Auto Transport?

RPM Freight isn't your typical trucking company. Founded in 2013, they’ve built a reputation on leveraging technology to optimize freight movement. They offer a unique combination of truckload brokerage, managed transportation services, and proprietary technology platforms like "RPM Xchange," which connects shippers with carriers, fostering efficiency and transparency. RPM's core strength lies in its ability to provide data-driven solutions that reduce costs and improve service levels for their clients – primarily large enterprises across various industries. They’ve consistently demonstrated a focus on innovation and a willingness to disrupt traditional freight models. You can learn more about their approach here: [ https://www.rpmfreight.com/ ]

Dealers Choice Auto Transport, on the other hand, is a well-established auto transport company specializing in serving automotive dealerships and financial institutions. Unlike many general consumer-focused auto shippers, DCAT focuses almost exclusively on business-to-business (B2B) relationships. They handle high volumes of vehicle movements – new car deliveries to dealerships, repossessed vehicles for lenders, and fleet relocations. This specialization has allowed them to develop deep expertise in the unique logistical challenges associated with transporting valuable assets efficiently and securely. Their focus is on reliability, consistent communication, and a strong understanding of dealer operational needs.

The Acquisition: Strategic Rationale & Synergies

According to RPM Freight CEO, Chad Calhoun, the acquisition of DCAT represents a “significant step” in their strategic plan to expand into adjacent markets. The rationale behind the move is multifaceted. Firstly, it allows RPM to tap into the substantial and relatively stable market for dealer-focused auto transport – a segment less susceptible to fluctuations driven by individual consumer demand compared to general retail auto shipping. Secondly, DCAT’s existing infrastructure, carrier network, and operational expertise provide an immediate platform for RPM to build upon.

The synergies between the two companies are considerable. RPM's technology platforms, particularly RPM Xchange, can be leveraged to optimize DCAT’s carrier selection process, improve rate negotiation, and enhance visibility into shipments. RPM’s data analytics capabilities will also allow DCAT to better understand its operational performance, identify areas for improvement, and proactively address potential disruptions. Conversely, DCAT's deep understanding of the automotive dealer landscape provides RPM with valuable insights into a new market segment and opens doors to cross-selling opportunities within RPM’s existing client base. RPM can now offer its larger enterprise clients integrated solutions that encompass both general freight and specialized vehicle transport.

Financial Details & Leadership

While the financial terms of the acquisition were not publicly disclosed, it's clear that RPM views this as a substantial investment in their future growth. The deal is expected to be immediately accretive to RPM’s earnings. Importantly, DCAT will continue to operate under its existing brand name and leadership team. This demonstrates RPM’s confidence in the strength of DCAT’s management and commitment to preserving the company's established relationships within the automotive industry. DCAT CEO, Mark Donahue, will remain at the helm, reporting directly to RPM Freight. This continuity is crucial for maintaining stability and ensuring a smooth integration process.

Impact on the Auto Transport Market & Future Outlook

The acquisition of Dealers Choice by RPM Freight has implications beyond just the two companies involved. It signals a growing trend of larger logistics providers seeking to consolidate specialized transportation segments. The auto transport market, while generally fragmented, is facing increasing pressure from rising operational costs (fuel, insurance, driver wages) and evolving customer expectations for transparency and real-time tracking. RPM’s entry into this space with its technology-driven approach could potentially disrupt the existing competitive landscape and drive further innovation within the industry.

Furthermore, the acquisition strengthens RPM's position as a comprehensive freight solutions provider. By adding specialized auto transport capabilities to their portfolio, they can offer clients a more holistic range of services, catering to increasingly complex supply chain needs. The combined entity is well-positioned to capitalize on future growth opportunities in both the truckload and vehicle transport markets, leveraging technology and data analytics to deliver superior value to customers. The integration process will be key; successfully blending DCAT’s operational expertise with RPM's technological prowess will determine the ultimate success of this strategic acquisition.

This acquisition represents a significant development for RPM Freight and underscores their ambition to become a leading force in the broader freight logistics landscape.


Read the Full FreightWaves Article at:
[ https://www.freightwaves.com/news/rpm-freight-acquires-dealers-choice-auto-transport ]


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