Livingston International agrees to transition domestic warehousing and ground transportation business to Schenker

Dec 08, 2010, 16:11 ET from Livingston International Inc.

TORONTO, Dec. 8 /PRNewswire/ - Livingston International Inc. and Schenker of Canada Limited have entered into an agreement under which Livingston will transition its North American domestic warehousing and ground transportation business, operated under Livingston Integrated Logistics, to Schenker, announced today Livingston CEO Peter Luit and Schenker CEO Eric Dewey.

The transaction does not affect Livingston International's international freight forwarding or vehicle transportation operations, nor its Canadian and U.S. customs brokerage, international trade consulting, event logistics or managed services businesses.

Under the terms of the deal, Livingston will transition the majority of its ground transportation and domestic warehousing business to Schenker in planned, collaborative phases over the next five to six months.  Although there will be some job loss, in areas such as Livingston's intermodal operation, which the company is exiting, and certain operational and support functions where there will be overlap when transitioned to Schenker, many Livingston employees working in its integrated logistics division will be part of the transition to Schenker.

"We are very excited about this transition and believe it is a natural fit with our existing transportation business," Dewey iterated.  "We are committed to developing and maintaining strong relationships with customers and providing them with high-quality, comprehensive transportation solutions.  We look forward to having new associates join our organization to strengthen our talent and ensure a seamless transition," added Dewey. 

"Since Livingston International was acquired earlier this year by a consortium of Sterling Partners and Canada Pension Plan Investment Board, we have been refining our strategic direction and five-year plan. What has emerged," Luit explained, "is our desire to adopt a much sharper focus on our core customs brokerage, international freight forwarding and compliance businesses, to grow substantially in the United States market.  While our integrated logistics unit is a very interesting business with considerable potential, it has not proven to be as complementary to our core customs and compliance services as we had anticipated.  In making this decision, we were guided by the belief that our people are valuable resources, committed to their customers, who should be allowed to advance in their jobs, working for a company that shares their values, recognizes their talent and is serious about investing in them and their business.  We have every confidence that Schenker will offer competitive, high-quality services for our integrated logistics clients and good opportunities for our staff," concluded Luit.

About Livingston
Livingston International is Canada's largest customs broker and one of the top five customs entry filers in the United States. The company also offers international trade consulting services as well as international freight forwarding services across North America.  Headquartered in Toronto, Ontario, Livingston has approximately 2,200 employees located at some 100 key border points, seaports, airports and other strategic locations across Canada and the United States.

About Schenker
Schenker of Canada Limited is the second largest integrated logistics service provider in Canada, operating from over 40 sites across the country.  The company spans a coast-to-coast network that extends to all major harbours, airports and border crossings.  In just over half a century, the business has grown to include 1,700 employees.  Schenker of Canada Limited has a portfolio of supply chain services in Canada that include contract warehousing/distribution, dedicated freight management, courier, land transportation and other services.

SOURCE Livingston International Inc.