Dynamex knows the dynamics of same-day delivery. The company offers both scheduled and on-demand delivery of time-sensitive items such as medical supplies and financial documents. It operates from about 60 company-owned (but locally managed) facilities in the US and Canada. Services are built around a network of ground couriers that focus on intracity deliveries; third-party air and ground carriers are used to fulfill same-day intercity services. Dynamex also supports clients in outsourcing certain logistics functions, including management of dedicated vehicle fleets and facilities -- such as mailrooms and inventory-tracking call centers. In 2011 the company was acquired by Canada's TransForce for $248 million.
The acquisition follows a $238 million bid by affiliates of Greenbriar Equity Group to acquire Dynamex. TransForce not only sweetened the deal but holds a significant share of Canada's package and courier market, which is anticipated to boost Dynamex's geographic presence.
Financially, Dynamex posted a 1% increase in revenue in 2010. Slight as it may be, it is a decided improvement over the 12% decrease it suffered between 2008 and 2009. The company implemented cost reduction initiatives in 2009, for which it paid hefty restructuring costs for workforce and facilities reductions, as well as management realignment. While it realized restructuring costs in 2010, too, the total was more than $800 million less than 2009.
Dynamex is operationally one of a handful of nationwide operators offering same-day delivery of items that can't be faxed or e-mailed. Its scheduled delivery business commands about two-thirds of its business, and its on-demand delivery business generates the remainder. The US represents more than two-thirds of Dynamex's revenues. Among its significant customers, Office Depot accounts for about 12% of sales. Not content, Dynamex has also worked to attract new business by partnering with providers of complementary services. The company and Canadian next-day delivery company Purolator make deliveries for one another, as well as market one another's services.
The acquisition by TransForce has taken shape under president and CEO James Welch's watch. A former Yellow Transportation executive, Welch took the post at Dynamex in late 2008; it was the first time in decades that Dynamex had received new leadership. Former CEO and president Richard McClelland, a 20-year company veteran, relinquished his executive posts, but stayed aboard as chairman. – less