French transportation and logistics company Geodis has signed an agreement to acquire the American company Need It Now Delivers, according to a Geodis press release. The acquisition will enable Geodis to increase its presence in the U.S. in the areas of contract logistics and last-mile delivery.
Marie-Christine Lombard, CEO of Geodis, said, "The acquisition of Need It Now Delivers is a key step through which we will strengthen and diversify our offerings in the U.S., providing our customers with a global and integrated end-to-end freight network in the United States, from international transport to last-mile delivery. This new acquisition represents an important milestone as we continue to progress on our strategic plan, Ambition 2023."
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Need It Now Delivers operates a domestic road freight network with more than 65 company locations and 300 distribution points. To offer its customers complete port-to-door logistics solutions, the company specializes in distribution, last-mile delivery, and multi-channel contract logistics across a range of industry verticals. Owned in part by management along with the private equity fund Palm Beach Capital, the New Jersey-based company employs approximately 2,000 people and is expected to reach revenues close to $750 million in 2022.
"Our U.S. supply chain business has consistently grown over the last 10 years," said Mike Honious, Geodis in Americas president and CEO. "With the services, capabilities, and the leadership team of Need It Now Delivers, we will expand our offerings and support the growth strategies of our customers."
This acquisition aims to strengthen Geodis’ American footprint and e-commerce services portfolio, with customers able to benefit from the group's expertise in end-to-end supply chain expertise in freight forwarding, road transport, contract logistics, and last-mile delivery.
Eric Mautner, CEO of Need It Now Delivers, said, "Since our inception in 1987, Need It Now Delivers has scaled rapidly to position ourselves as an industry leader with a special focus on omnichannel and last-mile delivery. Together with Geodis, our teams can continue to build upon this momentum to provide customers with a more expansive network of flexible, efficient, and reliable services that will ultimately allow us to successfully meet projected industry dynamics such as continued e-commerce growth and increasingly complex supply chains that require the need for omnichannel capabilities."
Once the transaction is completed, the Geodis group will employ roughly 15,000 people across more than 200 locations in the U.S and exceeding 17,000 in the Americas. The combined organizations of Geodis and Need It Now Delivers would have generated $3.7 billion in 2021 in the U.S.
The acquisition is subject to regulatory review and approvals, which are expected to be obtained by the end of 2022. Both companies will operate as independent businesses and run their operations as usual until that time.
