XPO Logistics has acquired two companies — the non-asset-based logistics company New Breed Holding Co. and last-mile logistics firm Atlantic Central Logistics — for more than $650 million.
XPO Chief Executive Officer Bradley Jacobs called New Breed Holding Co., which was purchased for $615 million, “the Rolls Royce of contract logistics.” He said the company will add 200 locations and 10,000 employees to the XPO network. The transaction is expected to close in the third quarter.
"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,” Jacobs said in a statement. “New Breed is a jewel in the crown of contract logistics: a world-class provider entrusted with critical services by some of the most prestigious corporate names in America.”
The ACL acquisition will expand XPO’s e-commerce market share, he said. ACL adds 14 more locations to XPO’s pre-existing Last Mile business.
During the second quarter, XPO Logistics’ revenue shot up 323.8 percent, year-over-year, to $581 million, though it recorded a net loss of $13.8 million, which is a year-over-year improvement of $3.6 million.
Net revenue increased by 530 percent to $121.9 million.
Due to these results, XPO officials have raised their 2014 revenue target from $2.75 billion to $3 billion, with an earnings-before-tax goal of $150 million, up from a previous prediction of $100 million.
"In the second quarter, we outperformed a favorable brokerage environment and delivered strong results across the board,” Jacobs said in a statement. “Our gross revenue, volume, net revenue margin and EBITDA all came in significantly ahead of plan.”