Courier Express sells to St. Louis based delivery firm

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A Springfield-based courier service is going a different route. Courier Express sold the rights to its 30 clients and $1.5 million in annual revenues to St. Louis-based 1st Choice Courier and Distribution Dec. 9.|ret||ret||tab|

Financial terms of the transition were not disclosed, but as a result of the deal, Courier Express owner and founder Bob Hood has stepped out of the picture. The company's 40-plus drivers and office staff were retained, said Charlie Walch, owner of 1st Choice Courier and Distribution.|ret||ret||tab|

The acquisition is a strategic move by Walch; his company, which specializes in same-day and special handling shipments, now covers the three major cities of Missouri, with terminals in St. Louis, Kansas City and Springfield. It also has operations in Indianapolis.|ret||ret||tab|

"This allows us to offer an expanded territory to customer bases in St. Louis and Kansas City," said Walch, who was in Springfield last week to automate the distribution system. The Springfield terminal is at 2901 E. Rockhurst St., Ste. A.|ret||ret||tab|

Hood cited a tough economy leading to diminishing revenues and, ultimately, the sale.|ret||ret||tab|

"I think Charlie and 1st Choice will take advantage of what we started here," Hood said.|ret||ret||tab|

But not before Walch adds his own touches. Walch is working on automating the billing and internal systems of the operations. Another change will allow customers to track deliveries and enter orders on the company's Web site, www.1stchoicecourier.com.|ret||ret||tab|

While the auto parts, banking and pharmacy industries lead the courier market here, Walch would like to work more with local industrial suppliers. |ret||ret||tab|

Walch estimates that Courier Express has 40 percent market share; he would like to bring that closer to 60 percent. Walch's Springfield drivers will travel 8,000 to 10,000 miles per day, he said.|ret||ret||tab|

McQueary Brothers Drug Co., which sends deliveries to seven states and about 90 pharmacies, is familiar with 1st Choice. McQueary Brothers was a client of Courier Express.|ret||ret||tab|

"I already used 1st Choice in St. Louis," said Tim Garten, the company's warehouse manager. "I'm very familiar with them and their people. Although I wasn't having too many service problems with Courier Express the smaller companies can't always afford to do some of the things" 1st Choice does, such as strict driver checks and online delivery tracking.|ret||ret||tab|

Garten places a lot of importance on McQueary Brothers' carrier service of choice because it is essentially an arm of the company.|ret||ret||tab|

"Whatever company we use, they are McQueary Brothers," he said. "To the customer, they are our agents, our representatives. So it's very important that we get the right company that we want."|ret||ret||tab|

Garten said he is pleased with the change in ownership.|ret||ret||tab|

Now is a good time for courier services in growth mode, said Walch, pointing to a consolidating industry that is making growth feasible. |ret||ret||tab|

"There is some consolidation going on," he said, largely due to the 1999 closing of Oregon-based Pony Express Courier. Its closing opened up about $15 million of business in Missouri. Walch said he is just one of a few firms that have capitalized on that.|ret||ret||tab|

Walch projects the company will do $12 million in revenues next year. It has 60 in-house staff and 270 drivers systemwide.|ret||ret||tab|

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