XPO Logistics has agreed to pay $365 million to acquire all of the common stock of 3PD, a non-asset, third-party provider of heavy goods, last-mile logistics in North America.
It is the trucking freight broker’s largest acquisition to date, in line with the company’s expansion strategy.
The transaction, which is expected to be immediately accretive to earnings, reflects an aggregate consideration of about $357 million of cash and $8 million of XPO restricted stock, and is expected to close in the third quarter of 2013, subject to Hart-Scott-Rodino clearance and customary conditions. XPO Logistics has obtained a commitment from Credit Suisse Group for a $195 million term loan, which together with cash on hand is sufficient to fund the transaction.
“Our acquisition of 3PD advances our strategy for rapid, disciplined growth in non-asset transportation logistics,” said Bradley Jacobs, chairman and CEO of XPO Logistics, in a written statement. “3PD is the clear market leader in the heavy goods, last-mile delivery space – an extremely fast-growing segment that serves blue chip retailers, e-commerce companies and smaller retailers.”
“XPO will be a direct provider of a high-margin, high cash flow service that’s filling a growing need of consumers and shippers, including our own customers,” he concluded.