Fort Smith-based Propak, a logistics and supply chain company, has been acquired by Dallas-based Pallet Logistics of America, the two companies said recently.
Propak employs 1,700 workers in 60 locations around the United States with 240 of those workers based in the Fort Smith area, the company said in response to emailed questions Wednesday. Propak will operate "business as usual" and said no job cuts are expected or planned.
The terms of the acquisition of Propak by Pallet Logistics of America, known as PLA, a portfolio company of Illinois-based private equity firm Silver Oak Services Partners, LLC, were not released.
Steve Clark, president and CEO of Propak, will continue in his role with the company overseeing operations and will join the Board of Directors of PLA. The Propak name and brand will remain unchanged and the company will operate as part of the other PLA companies -- Pallet Logistics of America, Pallet Repair Services, Pal-Serv, Valley Pallet, and Yancey Pallet. Propak was founded in 1999.
"This is an exciting time for Propak and our employees, and we are honored to be part of the PLA Family of Companies," Clark said in an emailed statement. "As part of PLA, we will be able to greatly expand our product and service offering which will provide significant opportunities for our employees. We are excited for this next phase of growth."
With the acquisition of Propak, PLA shifts from the largest pallet management services provider in the western U.S. to a national supply chain solutions provider, the company said. PLA was founded in 1989 and with the Propak acquisition now employs 2,600.
"We are excited to partner with Steve Clark and the entire team at Propak and look forward to supporting their continued growth," Wade Glisson, partner at Silver Oak, said in a statement. "Propak represents the fifth strategic partnership within the PLA platform and significantly expands our footprint and service capability."