M&A Summary

XPO Logistics completes acquisition of Kelron Logistics

XPO Logistics has acquired the freight brokerage operations of Kelron Logistics, a non-asset, third party logistics business based in Canada. The cash purchase price was $8m, excluding any working capital adjustments.
Founded in 1992, Kelron Logistics serves more than 1,000 customers through locations in Toronto, Ontario; Vancouver, British Columbia; Montreal, Quebec; and Cleveland, Ohio. For the 12 month period ended June 30, 2012 the company had revenues of $100m.
Bradley Jacobs, chairman and chief executive officer, said, “We’re pleased to have purchased Kelron Logistics as we continue to expand our brokerage operations. Kelron is a non-asset brokerage business with approximately $100m in revenue and 20 years of industry relationships. Its 2,500 carriers should be a valuable addition to our network. We plan to drive efficiencies at all four Kelron locations by providing access to our centralised carrier capacity and by migrating them to our IT system. We’ve successfully implemented this model with Continental Freight Services, which we bought in May.

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