On Monday, XPO Logistics Inc announced its acquisition of US-based port trucking provider Bridge Terminal Transport Services Inc for $100 million. This move has come soon after the first acquisition of French transport and logistics firm Norbert Dentressangle, by the company few days back.
North Carolina-based Bridge Terminal runs trucking or drayage, functions at around 28 port terminals and intermodal rail facilities using about 1300 independent truck drivers. The acquisition will help XPO with greater ability to take care of the shipments at U.S gateways and align its logistics and transport services better. XPO claims the deal would increase the drayage capacity by three times. Bradley Jacobs, CEO of XPO says, “Drayage capacity is tight. Often we get requests from customers to move their freight and if you do not have drayage capacity you could get into bad situations.”
The previous deal with Norbert Dentressangle is one of the biggest ever deal for $3.5 billion that includes the debt, has made the company XPO one-stop shop for transportation logistics. The deal helped raise XPO’s year-end revenue projections to $9.5 billion, an increase of $1 billion from the estimates of year-end revenue after acquisition.
The announcement of the second company Bridge Terminal comes along with its report of net loss of $14.7 million in the first quarter which is half of the new loss of $28.3 million last year. Taking into the consideration, both the acquisitions, the company XPO has raised the target revenue for 2015 to $9.5 billion. The new deal is expected to be closed in the second quarter and this would make the company world’s second largest freight brokerage firm on the basis of the net revenue.
Through the company’s last-mile delivery and expedite businesses, the total revenue increase more than double of its previous year to $703 million in the first quarter ended in March this year. The two businesses played a major role to balance the weak noncontract, or market for freight brokerage in the quarter and the disruptions caused by the intermodal operations in the West Coast.
On Monday, the share value of the company closed at $47.96 which is 13% more than the previous values and it has been increased because of the acquisition of Norbert Dentressangle last week.