Boston, MA 09/05/2014 (wallstreetpr) – XPO Logistics Inc (NYSE:XPO) completed the acquisition of New Breed Holding Company (New Breed) for cash payment of $615 million. The acquisition increases the customer base and expands its operation across 203 locations and also increases the employee strength to ~10,400.
New Breed’s former CEO, Louis DeJoy will remain the CEO of new contract logistic business of XPO due to his extensive holding over the business since 1983.
XPO funded the acquisition process from the available cash balances and net proceeds of $500 million of senior notes received from the private placement during August 2014. Of which, Mr. DeJoy used $30 million to purchase XPO Logistics Inc (NYSE:XPO)’s restricted stocks.
Credit Suisse Securities (USA) LLC and Wachtell, Lipton, Rosen & Katz acted as financial advisor and legal counselor respectively to XPO Logistics for this transaction. New Breed, at the same time, appointed Morgan Stanley & Co. LLC as financial advisor and Willkie Farr & Gallagher LLP as legal advisor.
Advantage
New Breed already had an excellent position in the U.S. contract logistic market that spread over diversified industries including aerospace and defense, manufacturing, medical equipments, retail/e-commerce and telecom/technology. The logistics provider offers the solutions to blue chip customers.
XPO intends to grow in the transportation logistics services across the North America and wants to hold its position in the contract logistics platform. Therefore, XPO Logistics Inc (NYSE:XPO) acquired New Breed, a contract logistics provider, to complement its services and grow organically.
XPO continued to pose significant growth from its existing, as well as acquired businesses. Accordingly, in July, the XPO Logistics Inc (NYSE:XPO) raised the financial targets for 2014 so to acquire New Breed. The acquisition will add ~$597 million of revenue and adjusted EBITDA of $77 million on an annual basis.
So, XPO Logistics Inc (NYSE:XPO) expects to generate revenue more than $3 billion and adjusted EBITDA of $150 million by 2014 while considering a new contract logistic business and current growth trends of existing business.
