Pallet Logistics of America (PLA), based in Dallas, has purchased Propak, headquartered in Fort Smith, Arkansas. Propak founder Steve Clark stated the acquisition would not affect employment, and he will continue to serve as Propak CEO.
“I’m really proud of what we’ve been able to do,” Clark told the Gazette. “We’ve been able to maintain relationships. Starting basically with a telephone and a good attitude and being able to build something that finds national value, I’m really proud of that. I’m proud of it for our team, proud of it for our city and our region, and we’ll just continue to build what we started.”
The deal’s terms have not yet been released, according to the Arkansas Gazette.
Propak was founded in 1999 by Clark and provides third-party logistics, reverse logistics, warehousing, transportation, and freight brokerage, according to the company website.
Clark told Talk Business & Politics (TB&P) that there would be no changes with Propak, noting that PLA recognized the importance of keeping Propak’s connections with its customers. According to TB&P, the company has 1,700 employees across more than 60 nationwide locations.
Clark will join the PLA board of directors and retain his role with Propak overseeing operations. He said the deal “could lead to additional jobs in Fort Smith.
“As PLA grows, the Fort Smith region has a low cost of living and other benefits that make it a good candidate for operational expansion,” he said.
Clark stated Propak would also continue its charitable work and community support efforts, and he will still own the company’s building in the historic downtown Fort Smith.
Every year, PLA handles over 40 million pallets for around 500 customers. With the acquisition of Propak, PLA will have 16 pallet management locations in the United States and an expanded logistics network.
Founded in 2005, PLA is a part of Silver Oak Services Partners located in Evanston, Illinois. The firm has raised more than $1.1 billion in capital and completed more than 25 transactions with 100 add-on acquisitions, according to TB&P.
PLA CEO Kyle Otting said he has known Clark for many years and is proud to welcome Propak to the PLA family.