XPO Logistics Sells Truckload Shipping Business to TransForce
Mergers and acquisitions are always a popular topic in the trucking industry.Â This is because these types of moves can shape the entire field by affecting everything from labor to prices to the future of technology.
This is why many in the industry took note when it was announced that XPO Logistics Inc. was sold. XPO Logistics has made an official announcement that it has sold its truckload shipping business to TransForce. The deal was reportedly conducted for $558 million.
This isnâ€™t the first time XPO has been involved in an acquisition, although last year they were the one making the purchase. After turning heads in the industry by purchasing Con-Way Inc., a move that many were shocked by, the company initially rejected bids from three trucking companies with the intent of continuing on with their own operations.
CEO Bradley Jacobs had spoken about the offers, saying: “I think we can improve it by integrating it and bringing it lots of new customers from our other service lines.â€ But things changed when TransForce approached the company with a deal. The proceeds of the transaction will reportedly go toward paying down debts which came with over a dozen acquisitions in the past 5 years.
Jacobs spoke about the acquisition, saying: â€œTransForce is getting the 19th largest asset-based truckload carrier in the U.S., a highly experienced workforce, and a presence in the cross-border Mexico freight corridor. We divested these assets to concentrate on growing our value to customers in the areas where weâ€™re leaders in the industry: contract logistics, truck brokerage, less-than-truckload, last mile, intermodal, drayage, expedite and managed transportation.â€
TransForce estimated the annual revenue that this acquisition would provide as being $530 million and EBITDA of $115 million in 2016.