GREENWICH, CT: XPO Logistics has purchased last-mile provider Atlantic Central Logistics (ACL) for US$36.5 million and announced an agreement to acquire contract logistics provider New Breed Holding Company for US$615 million.
New Breed had revenue of US$597 million and adjusted EBITDA of approximately US$77 million for the 12 months ending June 30, 2014.
The company was founded in 1968 and according to XPO has become a "pre-eminent provider of complex, industry-defining contract logistics services" under the chairmanship of Louise DeJoy who will become CEO of XPO's contract logistics business based in High Point, N.C.
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. Processing an average 275,000 orders a day and employing 6,800 people, its revenue renewal rate for the past three years has been a claimed 99 percent.
Bradley Jacobs, chairman and chief executive officer of XPO commented: "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...When the transaction is complete, we'll have an IT workforce of more than twice its current size, and about 10,000 employees at over 200 locations."
Founded in 1980, ACL provides last mile logistics for the growing demand for e-commerce fulfillment by facilitating the time-sensitive, local movement of goods between distribution centers and the end-user. ACL had revenue of US$63 million and adjusted EBITDA of US$6.2 million for the 12 months ending June 30, 2014.
Karl Meyer, CEO of XPO Last Mile said: "The acquisition of ACL expands our presence in the high-growth e-commerce sector, where we manage more last-mile deliveries of heavy goods than any other logistics provider. ACL's delivery patterns complement those of XPO Last Mile, allowing us to leverage capacity as we increase our volume."