XPO Logistics snaps up its 13th logistics company
XPO Logistics can check off two more acquisitions in its short history. Since September 2011, it has made thirteen acquisitions with #12 and #13 being made just last week. These latest two deals, combined at $652m now allow the company to offer a complete supply chain solution.
The company completed its acquisition of 3PL provider; Atlantic Central Logistics, a non-asset based provider of last mile logistics with 14 East Coast locations, and then turned around and announced it acquired New Breed.
New Breed specializes in services for omni-channel distribution, reverse logistics, transportation management, freight bill audit and payment, lean manufacturing support, aftermarket support and supply chain optimization. According to the press release announcing the acquisition, New Breed processes over 275,000 orders per day – typically premium, high-value products – through 71 facilities, and employs approximately 6,800 people. The press release also notes that the acquisition is consistent with XPO’s strategy of building a broad and integrated logistics offering by acquiring leading positions in sectors where it expects sustained demand for its services.
Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics, said, “We’re making a transformational move in acquiring New Breed – one that gives us critical mass and elevates our service offering. We’ll be able to deliver integrated, end-to-end logistics solutions for any company, of any size, with any combination of transportation needs.”
Indeed, according to the company, it is the largest US provider of last-mile logistics for heavy goods and the largest manager of expedited shipments, as well as the fourth-largest freight brokerage firm and the third-largest provider of intermodal services. In total, it makes about 31,000 deliveries per day in North America.
It seems this company is doing it right. Its recent quarterly earnings showed revenue quadrupling to $581m from $137.1m a year ago and net revenue climbing to $121.9m as compared to $19.3m for the same period last year. It looks like it is also doing a good job whittling down its net loss to $14.5m in the recent quarter compared to a loss of $18.1m in the same period last year.
The combination of all of its acquisitions also helped the company generate a 49% increase in organic growth companywide and 67% organic growth in its freight brokerage unit.