XPO Logistics agrees to buy 3PD for $365 million
XPO Logistics announced that it has entered into a definitive agreement to acquire all of the common stock of 3PD, Inc. in a transaction valued at approximately $365 million.
3PD, based in Atlanta, was founded by Karl and Randy Meyer in 2001 to capitalize on rapid growth in the last-mile logistics segment serving retail shippers. The business reported year-over-year growth in adjusted EBITDA of 20% and 36% for the full year 2012 and the first five months of 2013, respectively; and trailing 12 months revenue of $319 million through May 31, 2013.
3PD provides retailers with customized solutions tailored to their supply chain needs, and serves small and mid-sized shippers by matching them to carriers on a transactional basis, according to a company press release.
“Our acquisition of 3PD advances our strategy for rapid, disciplined growth in non-asset transportation logistics. 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,” Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said.
“We’re extremely pleased that Karl and his management team will be staying on to lead the business. They’ve built 3PD into the first choice of heavy goods shippers by delivering outstanding results in an exacting service environment. 3PD’s offerings fit squarely within our core competency and complement our current range of services. Very soon, 3PD’s customers will have the convenience of white glove deliveries, truck brokerage, freight forwarding and expedite services through a single source,” Jacobs said.
