Chattanooga, Tenn.—In a move signaling strategic growth and category expansion, LRT Group has acquired XGS, a leading logistics provider serving the flooring industry. The acquisition positions LRT Group to significantly strengthen its footprint in the less-than-truckload (LTL) space—a segment CEO Devin Dean said is ripe for opportunity.
“Our decision to buy [XGS was] strategic,” Dean explained. “There’s a lot of room for growth in the LTL space, and we wanted a company that has the network built. We plan to grow XGS in an aggressive manner. We think they have the network to double in three years.”
Dean confirmed that XGS will remain its own entity under the LRT Group umbrella while it moves forward with its growth plans. “There’s a lot of market share that we think we can gain by running this business more efficiently,” Dean explained. “We understand trucking. We just have to be intentional about how we do it and provide a better experience for the driver and for the customer, and that’s what we plan on doing. That’s our focus.”
LRT Group also sees potential in expanding XGS’ service territory. “There’s a lot of untapped markets that we’re going to grow XGS into, like the Southeast—we don’t have a whole lot of coverage in the Southeast, and we want to grow that,” he noted.
Elevating the driver, customer experience
Central to LRT Group’s integration strategy is improving both driver satisfaction and customer service.
When it comes to drivers, Dean emphasized the company’s focus on fostering a performance-driven culture. “We want to create an environment where winners succeed and low performers get off the bus. We’re very forthcoming and transparent with our drivers. Drivers are who we are. We wouldn’t have anything without the drivers. So we take care of them, and in turn, they give our customer a better experience—and that’s what makes the wheel go around.”
Customers, Dean added, can expect a seamless transition and stronger service as part of the acquisition. “Customers can expect a better experience going forward,” he said. “We’re very service-minded, customer first, so they can expect a better experience than what they’ve had in the past. We want to service our customer in a way that no one else can offer.”
For LRT Group, that means better speed and efficiency—but also better technology. “We have one of the best technologies—our in-house TMS system,” Dean said. “We’re integrated with AI—we can give customers the updates they need and in real-time. We can offer live tracking on our trucks. It’s just a better experience.”
The bottom line
Looking ahead to both the near and long term, Dean said the company’s goals are simple yet ambitious: continued growth and market disruption. “Growth is first on our minds,” he said. “I would say both our near-term and long-term goals are to grow—market expansion, customer growth, expanding with our existing customers. Market disruption, really. Because freight—that’s who we are, what we do. Pick up freight, deliver freight and bill freight. It’s very simple. We just want to do it at a rapid speed.”
