XPO Logistics has acquired Optima Service Solutions for $26.6 million.
The cash purchase price for Optima, a non-asset provider of last-mile logistics services for U.S. retailers and manufacturers, excluded working capital adjustments and there was no assumption of debt. The acquisition of the Atlanta-based company is expected to be immediately accretive to earnings, exclusive of any synergies with the company’s existing freight brokerage business.
“Optima is a fast-growing, highly scalable leader in its space, and expands the capabilities of our last-mile division, 3PD,” said Bradley Jacobs, chairman and CEO of XPO Logistics, in a written statement. “It enhances our ability to provide a seamless in-home delivery experience for end customers, particularly with large appliances and electronics.”
Optima reported revenue of $35.7 million in the 12 months ending Oct. 31, 2013. Furthermore, the company has generated a 16 percent compound annual growth rate over the last five years.
Technology also played an important factor in XPO’s decision to acquire Optima, according to Scott Malat, XPO’s chief strategy officer.
“Optima also has great proprietary technology that tracks the last-mile process from scheduling through delivery that we're going to integrate into our systems,” Malat told JOC. “We have world class technology at XPO, but if an acquisition can bring something new to the table, that's certainly attractive.”
Prior to the acquisition, XPO, a North American freight brokerage firm,, had around 2,000 last-mile carriers from its acquisition of 3PD, according to Stifel Transportation & Logistics Research Group. With Optima, XPO is adding another 250 carriers and a “wide network” of technicians across the U.S., Stifel said.
“With 3PD, we’re already the largest player in heavy goods last-mile logistics,” Malat explained. “Now we’ll be able to tap into a larger carrier base and gain specialized technicians who work with appliances and electronics.”
Although the acquisitions of last-mile delivery logistics services may seem like a detour from XPO’s pursuit of truck freight brokerage business, the company said after its purchase of 3PD that last-mile delivery logistics services complement its freight brokerage business and open new routes deeper into shipper customer supply chains. XPO reported a 173.3 percent leap in total revenue in the third quarter of 2013, partially driven by recent acquisitions.