ArcBest (ARCB) Unit Acquires Logistics & Distribution Services
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ABF Logistics®, an ArcBest company (Nasdaq: ARCB), announced it has acquired Logistics & Distribution Services, LLC (LDS), a private logistics and distribution company headquartered in Sparks, Nevada, effective today, in a transaction valued at $25.0 million, subject to normal post-closing adjustments. The transaction reflects cash consideration of $17.0 million paid at closing and an additional $8.0 million that will be held in escrow and released upon achievement of certain financial targets over the next two years.
LDS has approximately 30 employees, primarily located in Sparks, with an additional location in Allentown, Pennsylvania. The company, founded in 2001, has approximately $60 million in annual revenue and provides dedicated truckload capacity across the United States through an asset-light operating model.
"This acquisition complements our business nicely by adding to our existing services, specifically in deploying dedicated capacity, which will increase the breadth of our available solutions for customers," said ABF Logistics President Jim Ingram. "We like the customer-centric model LDS has built. This purchase is another important step in our strategy to seamlessly provide customers with the full logistics services they require and grow the percentage of total revenue that comes from the asset-light businesses operated by ArcBest."
Ross Kline, founder, president and CEO of LDS, will stay on and lead these new ABF Logistics branches in Sparks and Allentown. Kline's career spans nearly 35 years in transportation, with 25 years in running a dedicated brokerage model. "Ross shares our values and brings decades of experience to our team," said Ingram. "We are excited to welcome him and the LDS team as part of our organization."
"This is a perfect alignment of two unique logistics providers," said Kline. "Our current and future customers will have more solutions available with the combination of LDS and the ABF Logistics team. We look forward to joining ABF Logistics and the broader ArcBest organization, including ABF Freight® and Panther Premium Logistics®."
In keeping with ArcBest's stated goals to grow the asset-light businesses organically and through acquisition, this is the third purchase for ABF Logistics, which formed in 2013. Previously, the company purchased Plano, Texas-based Bear Transportation Services in December 2015 and Oklahoma City-based Smart Lines Transportation Group in January 2015.
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