ABF Logistics an ArcBestSM company announced it has acquired Logistics & Distribution Services, LLC (LDS), a private logistics and distribution company headquartered in Sparks, Nevada, effective , 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.
â€œThis 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,â€ said ABF Logistics President Jim Ingram. â€œWe 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.â€
Ross Kline, founder, president and CEO of LDS, will stay on and lead these new ABF Logistics branches in Sparks and Allentown. Klineâ€™s career spans nearly 35 years in transportation, with 25 years in running a dedicated brokerage model. â€œRoss shares our values and brings decades of experience to our team,â€ said Ingram. â€œWe are excited to welcome him and the LDS team as part of our organization.â€
â€œThis is a perfect alignment of two unique logistics providers,â€ said Kline. â€œOur 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 FreightÂ® and Panther Premium LogisticsÂ®.â€
In keeping with ArcBestâ€™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 Citybased Smart Lines Transportation Group in January 2015.
ABOUT ABF LOGISTICS
ABF LogisticsÂ® provides third-party logistics services including brokerage, intermodal and ocean transport, warehousing and household moving. We have The Skill and The WillÂ® to build and deliver seamless, customized supply chain solutions powered by advanced technology with access through a single point of contact.
ArcBest Corporation solves complex logistics and transportation challenges. Our companies and brands ABF FreightÂ®, ABF LogisticsÂ®, Panther Premium LogisticsÂ®, FleetNet AmericaÂ®, U-PackÂ® and ArcBest Technologies apply The Skill and The Will with every shipment and supply chain solution, household move or vehicle repair. ArcBest finds a way.