XPO Logistics has acquired the operating assets of Turbo Logistics, the freight brokerage division of Ozburn-Hessey Logistics (OHL), the company said Thursday.
The cash purchase price was $50 million, excluding any working capital adjustments, with no assumption of debt. The acquisition is expected to be immediately accretive to earnings.
Founded in 1984, Turbo Logistics serves more than 600 customers from four locations: Gainesville, Ga.; Reno, Nev.; Chicago; and Dallas. The company had 170 employees and trailing 12 months revenue of about $124 million as of Sept. 30, XPO said in a statement.
“Turbo Logistics is a well run, highly scalable brokerage business that has earned 28 years of respect in the industry,” said Bradley Jacobs, chairman and chief executive officer of XPO Logistics. “They have a strong carrier network and deep relationships in the retail, manufacturing and food and beverage sectors. Turbo’s expedite business has synergies with our Express-1 expedite division, and on the truckload side, we’ve now acquired a significant position in the temperature-controlled freight market.
Jacobs said Turbo executives David Coker and Jeff Battle will stay on in leadership positions through the acquisition.
“Their combined 33 years of experience at Turbo will help us scale up in Gainesville, the largest location, and in Reno,” he said. “Our plan for Chicago is to merge it with one of our fastest-growing cold-starts, led by Abtin Hamidi. We’ll do the same in Dallas, where we have a cold-start run by Doug George that’s gaining traction. We’re effectively creating large, combined platforms that we can scale up dramatically in these two metro areas.” - Eric Johnson