48forty Solutions leads North America’s pallet management industry. They manage over 500 million pallets each year. This success comes from a wide network of facilities and a large private fleet. The company has seen impressive growth. This success comes from smart acquisitions and partnerships with private equity. They have also invested heavily in sustainability, technology, and improving operations. In November 2024, 48forty finished an important recapitalization deal. This move helps the company keep innovating and growing. It also boosts its financial flexibility during the industry-wide recovery.
Company Overview and Financial Performance
48forty Solutions is the biggest pallet management services company in North America. It reported revenue of $709.1 million, based on industry data. The company has about 2,700 customers. It operates in 12,400 ship-to locations throughout the U.S. and Canada.
The company’s operational scale is impressive, with a national network comprising:
- 73 company-owned and operated pallet recycling plants
- 186 onsite locations
- 14 reusable asset depots
- 4 sorting centers
- Support from more than 850 service providers
This large infrastructure is backed by one of the biggest private fleets in the country. It includes over 504 tractors and 8,005 trailers. The company handles more than 493 million pallets each year. This makes it the top player in North America’s pallet management industry.
History and Evolution
The company started in 1996 with PalEx. This pallet recycler ran 62 plants in the U.S. and Canada. In March 2000, PalEx merged with IFCO Systems. IFCO is a global company from Germany that pools reusable plastic containers. This merger created IFCO Systems. In the next decade, IFCO’s pallet management division grew a lot. It turned into North America’s largest pallet recycler. It handles more than 200 million pallets every year.
The company underwent another significant transition in 2011 when Australian-based Brambles Ltd. CHEP USA acquired IFCO Systems. This led to the recycled pallet business becoming part of CHEP USA. It was then rebranded as CHEP Recycled Pallet Solutions. The company we know today started in 2018. In that year, Grey Mountain Partners purchased the business from Brambles. They renamed it 48forty Solutions.
In 2021, the company grew quickly by partnering with Audax Private Equity. This deal grew its products and services. It also boosted its presence in North America. In March 2022, Summit Partners invested in 48forty. They joined Audax Private Equity as equal partners in the business. In November 2024, 48forty recapitalized. Summit Partners is now the majority owner.
Leadership and Strategic Growth
CEO Mike Hachtman leads 48forty in a bold growth plan. The focus is on strategic acquisitions, tech investments, and sustainability efforts. Hachtman promises high-quality, reliable, and complete solutions for customers in North America.
The executive team includes three key members:
- Jennifer Thomas, Chief Financial Officer
- JR Vernon, Chief Strategy Officer
- Jon Heyler, Executive Vice President
This leadership team has helped 48forty grow a lot. They keep a strong focus on operations and customers.
The November 2024 recapitalization is a key step in 48forty’s growth strategy. Hachtman said, “We’re excited to keep working with Summit and grow our lender partnership.” This deal will boost our focus on innovation. Innovation is key for a sustainable future. We offer services that make operations easier, cut costs, and satisfy our North American customers.
Acquisitions and Strategic Partnerships
Since 2021, 48forty has made many strategic acquisitions. These moves have greatly increased its operational footprint and service capabilities.
2021-2022 Acquisitions:
- Relogistics and Prime360
- Oregon Pallet and J&B Pallet
- Allegheny Recycled Products and Industrial Pallet (January 2022)
- IPS Canada and Nazareth Pallet
- Bo’s Pallets and Pallet Consultants
- The Recycling Division of Girard Wood Products
- CALco Pallets (August 2022)
- Pallet-Ops (September 2022)
- Innovative Data Systems (September 2022)
2023 Acquisitions:
- Taylor Pallets & Recycling (June 2023)
These acquisitions have strategically expanded 48forty’s operational footprint, particularly in key markets. The acquisition of CALco Pallets boosted the company’s presence in the Midwest. Now, it has facilities in Chicago, Richmond, IL, and Bryant, WI. The Pallet-Ops acquisition boosted 48forty’s Texas operations. It added facilities in San Antonio, Dallas, and Houston. The Taylor Pallets acquisition grew the company’s presence in the Southeast. Now, they have locations in South Carolina, Georgia, and North Carolina.
Acquiring Innovative Data Systems was important for technology. It added the Pallet-Track® Suite software to 48forty’s offerings. This software offers complete solutions. It covers ERP. It gathers data from the plant floor. It manages inventory changes, handles compensation, tracks trailers, and uses electronic BOLs.
Services and Operations
48forty offers complete pallet management solutions. These services make operations easier for customers. The company’s core services include:
- Pallet supply and retrieval
- New and custom pallet manufacturing
- On-site pallet sortation, recycling, and repair services
- Reverse logistics
- Retail services
- Total pallet management (TPM)
A key part of 48forty’s work is blending national strength with local knowledge. The company has a wide network of facilities. Many have served local areas for decades. This gives customers reliable service and strong knowledge of regional markets. Each facility is located near major transportation routes. They have the resources needed for full pallet services. This includes tractors, trailers, storage space, and 24/7 delivery.
The company’s scale is impressive, especially given the amount of materials it handles. In fiscal year 2023 alone, 48forty processed:
- 246,327,224 pallets sorted
- 8,341,898 plastic totes
- 28,824,654 reusable corrugated boxes
- 809,808 reusable plastic containers
Technology and Innovation
48forty has invested heavily in technology. This boosts both operational efficiency and customer service. A good example is the PalTrax® online pallet management system. It helps customers to:
- Schedule pallet purchases and retrievals online and track status 24/7
- View/export order history by day, week, month, year, locations, and quantities
- Access current and archived bills of lading and proof of delivery documents
- Generate comprehensive data reports
In September 2022, 48forty acquired Innovative Data Systems. This move boosted its tech skills. IDS’s Pallet-Track® Suite software offers complete solutions. It includes ERP, data collection from the plant floor, inventory changes, and compensation. It also covers trailer tracking, electronic BOLs, and more. CEO Mike Hachtman stressed the strategic value of this acquisition. He said, “Investing in and enhancing this crucial technology is a key reason for this move.” Not only will 48forty benefit from using the tool, but so will existing and future customers”.
Also, 48forty uses tech-based programs to manage carbon emissions. This helps them report carbon levels and boost sustainability efforts. This digital method for managing carbon footprints is a big step up from old manual ways. It lets us track emissions in real-time and find better ways to reduce them.
Sustainability and Environmental Impact
Sustainability is a core pillar of 48forty’s business model and corporate identity. The company is a leader in environmental stewardship. It has made major strides in this area:
Environmental Metrics
48forty’s FY23 Sustainability Report shows that the company’s operations have led to:
- 13,526,821 trees conserved
- 2,838,104 tons of waste diverted from landfills
- Preventing 12.5 million tons of CO2e emissions
Sustainability Recognition
In November 2023, Greenly, a top company in digital carbon footprints, gave the Silver Medal to 48forty. This honor ranked 48forty in the top 10% of assessed companies. It recognized the company’s outstanding efforts in:
- Setting a multi-year decarbonization trajectory
- Defining action plans
- Engaging suppliers in a sustainable procurement policy
Mike Hachtman said, “This achievement is the first of its kind in our industry. It shows our commitment to sustainability and our goal to help the environment.”
Carbon Management Strategy
48forty teamed up with Greenly. Together, they will calculate its carbon footprint. They will also create a solid plan for reaching net-zero. This partnership has enabled the company to:
- Digitize its carbon footprint tracking
- Streamline emissions reporting
- Develop effective reduction strategies
- Establish a path toward net-zero emissions
Jess Bonsall, the ESG Director, stressed the importance of clear environmental reporting. She said, “First, we must recognize how important it is to be open about our environmental impact as a company.” The public and investors increasingly want companies to share this information clearly. So much so that I think it’s becoming a license to operate”.
Circular Economy Approach
48forty’s model supports the circular economy. It focuses on pallet recycling, reuse, and remanufacturing. The company’s thorough pallet management helps extend the life of wood materials. This cuts waste and saves resources. 48forty, through its Relogistics brand, provides total pallet management (TPM) services. These services help circularity. They sort, count, report, and transport reusables and recyclables after packaging.
Company Culture and Social Responsibility
48forty focuses on employee growth, safety, and social responsibility in its culture. The company implements various initiatives to support these priorities:
Employee Development and Recognition
The company invests in training and development. This helps employees grow and advance in their careers, no matter their role or location. Many managers have risen through the ranks at 48forty. This shows the company values promoting from within. It focuses on developing employees for the long term.
Notable employee-focused programs include:
- Driver Recognition Program that acknowledges excellence among transportation team members
- Workforce Education & Training programs
- Employee Resource Groups, such as “Women of North America Pallet,” work to close the gender talent gap in our field.
Safety Initiatives
48forty prioritizes workplace safety. They have strong programs to protect employees and improve operational efficiency. Focusing on safety protects employees and helps the business succeed.
Community and Social Responsibility
The company engages in various philanthropic and social responsibility initiatives, including:
- Patriotic Pallet Project
- Partnership with Truckers Against Trafficking
- Pallets for the Planet is an initiative. It helps people see how to reduce supply chains’ harm to the environment.
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