XPO Logistics has signed an agreement to buy New Breed Holdings for $615m. XPO Logistics is a non-asset based 3PL based in Connecticut, US that offers truckload, LTL, ground and air expedited services for the automotive industry (amongst others), as well as intermodal and transport services. New Breed specialises in a range of logistics services including distribution, reverse logistics, transport management and supply chain optimisation.
Once the deal is complete XPO have about 10,000 employees at more than 200 locations.
“We’ll be able to deliver integrated, end-to-end logistics solutions for any company, of any size, with any combination of transportation needs,” said Bradley Jacobs, chairman and CEO of XPO Logistics (pictured). “New Breed is a jewel in the crown of contract logistics: a world-class provider entrusted with critical services by some of the most prestigious corporate names in America.”
It also bought National Logistics Management (NLM) from Landstar System in December last year.
XPO is currently one of the largest providers of intermodal services for US-Mexico cross-border freight, including for the automotive industry. In a recent interview with Automotive Logistics, XPO's chief commercial officer, Julie Luna said that the 3PL plans to add container chassis and capacity to support Mexican volume. It will also increase its partnerships with dray carriers to increase truck capacity.
Results for the second quarter show that XPO sustained a net loss of $13.8m compared with a net loss of $17.4m for the same period in 2013. That loss excludes the $720,000, or $593,000 after-tax, of transaction and integration costs related to the acquisition of Pacer. Total gross revenue increased almost 324% year-over-year to $581m, and net revenue increased 530% to almost $122m.