Willowbrook, IL March 6, 2003 – R.R. Donnelley Logistics announced today that it has acquired the assets of Momentum Logistics, Inc. (MLI) for approximately $17 million. MLI, a Florida-based provider of package distribution services in the Southeastern United States, generated $60 million in sales in 2002.
MLI (www.momentumlogistics.com) operates sortation facilities and a dedicated fleet of vehicles to provide business-to-business and business-to-consumer package distribution services. In the business to consumer segment, MLI leverages the United States Postal Service (USPS) for last mile delivery to the home. By reaching over 1,000 local post offices each day, MLI has established itself as the premier delivery service provider in the Southeast.
MLI has been a regional service provider to R.R. Donnelley Logistics for the past 3 years, which will enable a quick, complete and orderly integration of the two companies. MLI customers will gain access to R. R. Donnelley Logistics’ national delivery network and full suite of services including Lightweight Express and Virtual Distribution. Additionally, R.R. Donnelley Logistics’ end-to-end package tracking and performance reporting systems will be implemented to improve the daily service experience for MLI’s existing customers.
“The acquisition represents a win-win situation for customers of both companies,” says Paul Saffell, President of MLI. “In the short term, our customers will continue to receive the same great service to the Southeast that they have come to expect from MLI. In the weeks ahead, as we integrate the capabilities of the two companies, our customers will gain even more visibility of their shipments. And perhaps the greatest benefit of all will be having access to a national network, and a comprehensive set of services that complement those of MLI. We’re excited to become an integral part of R.R. Donnelley Logistics’ national delivery network. Our current customers will see additional service improvements, as well as new service offerings that are economical, reliable and easy to use.”
R. R. Donnelley Logistics’ existing customers will benefit from a fully integrated operating model, with greater efficiency, control and visibility of package destined for the Southeast. Additionally, R.R. Donnelley Logistics will expand its current service offering to include next day business-to-business, and direct delivery to local post offices in the Southeast.
“One of the benefits of the acquisition will be providing customers greater control of the distribution process at the local level,” states Steve Korol, president of Package Services. “The acquisition, which includes a fleet of local delivery vehicles, gives the company direct access to hundreds of local entry points in the USPS network in Florida, Georgia, Alabama, Virginia, Tennessee and North and South Carolina.”
Later this year, R.R. Donnelley Logistics will expand MLI’s reach further north to support the York, PA SuperCenter announced in December. Additionally, the company plans to use MLI expertise to begin delivering catalog, retail and magazine customers printed materials with greater efficiency and control
“While the acquisition of MLI will certainly accelerate the growth of our package delivery business, I’m also excited about the opportunity this provides for our print distribution services,” says R.R. Donnelley Logistics president, John Campanelli. “R.R. Donnelley Logistics operates the nation’s leading print distribution network and MLI’s local delivery capabilities will provide the opportunity to take mail further into the postal stream, and provide increased levels of service to retailers using newspaper inserts to increase store traffic. We have the best people, network and ideas and we combine these strengths to deliver customer value.”
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About R.R. Donnelley Logistics
R.R. Donnelley Logistics, a business of R.R. Donnelley, provides logistics solutions for a wide range of industries, including leading catalogers, e-retailers, publishers, financial services firms and pharmaceutical companies. As a leader in postal logistics, the company annually directs more than 20 billion print and mail pieces and 160 million packages to homes across the nation. R.R. Donnelley Logistics delivers predictable, on-time, cost saving business solutions leveraging its nationwide network of sortation facilities, expedited delivery capabilities and advanced technology systems. For more information about R.R. Donnelley Logistics, contact the company at www.donnelleylogistics.com.
About R.R. Donnelley R.R.
Donnelley (www.rrdonnelley.com)prepares, produces and delivers integrated communications across multiple channels for content owners such as publishers, merchandisers, and telecommunications companies as well as capital markets and diversified financial services companies. As a single source supplying services up and down the communications value chain, the company excels in digital photography, content management, printing, online services, and print and package logistics. With these integrated services, R.R. Donnelley provides effective solutions for its customers’ targeted communications and delivery needs. Headquartered in Chicago, Ill., R.R. Donnelley serves a global customer market and has 30,000 employees in more than 200 locations in North America, South America, Europe and the Asia/Pacific Basin.