XPO Logistics, Inc. : XPO Logistics Completes Acquisition of 3PD
Gains immediate leadership in heavy goods, last-mile logistics
Accelerates financial and operational growth
GREENWICH, Conn. - August 16, 2013 - XPO Logistics, Inc. (NYSE: XPO) ("XPO" or
the "company") today announced that it has completed its previously announced
acquisition of 3PD Holding, Inc. ("3PD") in a transaction valued at
approximately $365 million. The acquisition is expected to be significantly
accretive to earnings. The company financed the acquisition and related fees
and expenses with the net proceeds of its recent $220.5 million public
offering of common stock, together with cash on hand.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said,
"Our acquisition of 3PD gives us immediate leadership in the heavy goods,
last-mile space - an underpenetrated market for logistics with an exciting
growth trajectory. We welcome 3PD's customers, carriers and employees, all of
whom will benefit from the combined resources of our larger organization."
Jacobs continued, "We're very bullish about the opportunities embedded in each
of our five avenues of growth: optimizing our existing operations,
cold-starts, acquisitions, our strategic and national accounts program, and
now last-mile. We're right on plan for our long-term goal of creating a
world-class 3PL with several billion dollars of revenue and several hundred
million dollars of EBITDA."
3PD, founded in 2001, is the premier provider of heavy goods, last-mile
logistics in North America. 3PD provides blue chip 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. The business
has differentiated itself through its ability to assure a superb customer
experience using proprietary technology and industry-leading process
Credit Suisse Group served as financial advisor to the board of directors of
XPO Logistics, and Morgan Stanley & Co. LLC served as financial advisor to the
board of directors of 3PD.
About XPO Logistics, Inc.
XPO Logistics, Inc. (NYSE: XPO) is one of the fastest growing providers of
transportation logistics services in North America, offering freight
brokerage, last-mile logistics, expedited transportation and freight
forwarding services. The company uses its relationships with more than 22,000
ground, sea and air carriers to serve over 8,600 customers in the
manufacturing, industrial, retail, commercial, life sciences and government
sectors. XPO is built to deliver constant growth in truck capacity, passionate
service and technological innovation through 89 locations in the United States
Forward Looking Statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including the Company's future
revenue and EBITDA expectations, the expected impact of the 3PD acquisition
and the expected growth of the last-mile delivery logistics market. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. In some cases, forward-looking statements can
be identified by the use of forward-looking terms such as "anticipate,"
"estimate," "believe," "continue," "could," "intend," "may," "plan,"
"potential," "predict," "should," "will," "expect," "objective," "projection,"
"forecast," "goal," "guidance," "outlook," "effort," "target" or the negative
of these terms or other comparable terms. However, the absence of these words
does not mean that the statements are not forward-looking. These
forward-looking statements are based on certain assumptions and analyses made
by us in light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as other factors
we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of
activity, performance or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or
implied by such forward-looking statements. Factors that might cause or
contribute to a material difference include, but are not limited to, those
discussed in our filings with the SEC and the following: economic conditions
generally; competition; our ability to find suitable acquisition candidates
and execute our acquisition strategy; the impact of the 3PD acquisition; our
ability to raise debt and equity capital; our ability to attract and retain
key employees to execute our growth strategy, including retention of 3PD's
management team; litigation, including litigation related to misclassification
of independent contractors; our ability to develop and implement a suitable
information technology system; our ability to maintain positive relationships
with our network of third-party transportation providers; our ability to
retain our and 3PD's largest customers; our ability to successfully integrate
3PD and other acquired businesses; and governmental regulation. All
forward-looking statements set forth in this press release are qualified by
these cautionary statements and there can be no assurance that the actual
results or developments anticipated by us will be realized or, even if
substantially realized, that they will have the expected consequences to or
effects on us or our business or operations. Forward-looking statements set
forth in this press release speak only as of the date hereof and we do not
undertake any obligation to update forward-looking statements to reflect
subsequent events or circumstances, changes in expectations or the occurrence
of unanticipated events except to the extent required by law.
XPO Logistics, Inc.
Dana Gibson, +1-203-930-1470
Steve Lipin / Gemma Hart, +1-212-333-3810
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information contained therein.
Source: XPO Logistics, Inc. via Thomson Reuters ONE
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