ABF Logistics, an ArcBest Company (NASDAQ: ARCB), recently announced the acquisition of Logistics & Distribution Services, LLC (LDS) for $25 million. ArcBest is in the business of solving complex logistical and transportation problems. LDS is a Nevada-based private logistics and distribution company made up of around 30 employees. Founded in 2001, LDS has a second location in Pennsylvania and offers dedicated trucking operations across the U.S.
In a news release announcing the acquisition, Jim Ingram, president of ABF Logistics, stated, “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.” He continued by explaining how important this purchase is to the company’s strategy of meeting its customers’ logistical needs, as well as building on the revenue that comes from the other businesses run by ArcBest.
The purchase, which came into effect on September 2, 2016, has a transaction value subject to normal post-closing adjustments. The purchase includes cash consideration of $17 million to be paid at closing, as well as $8 million to be paid once certain financial targets have been met within the next couple of years. LDS CEO, founder and president, Ross Kline, has approximately 25 years of experience in the transportation industry and will continue to lead both branches in Nevada and Philadelphia. Kline had this to say:
“This is a perfect alignment of two unique logistics providers. 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®.”
ArcBest aims to grow asset-light businesses organically through acquisition. Since its formation in 2013, ABF Logistics has made three purchases, including Texas-based Bear Transportation Services and Oklahoma-based Smart Lines Transportation Group.
For more information, visit www.arcb.com
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