XPO Logistics – XPO – Acquires OHL’s Turbo Logistics
NYSE: XPO) announced that it has acquired the operating assets of Turbo Logistics, Inc., the freight brokerage division of Ozburn-Hessey Logistics, LLC (OHL). 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 through four locations: Gainesville, Ga.; Reno, Nev.; Chicago, Ill.; and Dallas, Texas. The company had 170 employees and trailing 12 months revenue of approximately $124 million as of September 30, 2012.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “Turbo Logistics is a well run, highly scalable brokerage business that has earned 28 years of respect in the industry. 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.
“We’re very pleased that David Coker and Jeff Battle will be staying on in leadership positions. Their combined 33 years of experience at Turbo will help us scale up in Gainesville, the largest location, and in Reno. 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.”
Jacobs continued, “We’re on track or ahead of schedule with every major component of our growth strategy: acquisitions, cold-starts and the optimization of our operations. With the acquisition of Turbo, we’re fast approaching the $500 million revenue run rate we targeted for year-end.”
About XPO Logistics, Inc. – XPO
XPO Logistics, Inc. (XPO) is one of the fastest growing providers of non-asset based, third-party freight transportation services in North America. The company uses its network of more than 20,000 relationships with ground, sea and air carriers to find the best transportation solutions for its customers. XPO Logistics offers its services through three distinct business units: freight brokerage; expedited transportation (Express-1, Inc.); and freight forwarding (Concert Group Logistics, Inc.). The company serves more than 7,500 customers in the retail, commercial, manufacturing and industrial sectors through 56 locations, including 33 branches in the United States and Canada and 23 agent offices.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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