XPO Logistics recently purchased Salt Lake City-based Interide Logistics, a $28 million company, for $3.7 million in cash and stock.
The company will keep Interride’s boss, Sean Snow, at the helm and will help him scale up operations at the firm’s other locations in Minneapolis and Louisville.
In February, XPO purchased Covered Logistics and Transportation for $11 million in cash and stock. Two weeks earlier, it inked a deal to take over East Coast Air Charter for $9.25 million.
At the time, Chief Executive Officer Brad Jacobs commented to American Shipper that that company was looking to acquire additional firms adding up to $300 million in historical revenue this year. After the Covered Logistics acquisition, Jacobs allowed that XPO would probably purchase three more companies this year.
This aggressive acquisition pace has helped XPO achieve astounding year-over-year growth. Revenue at the firm skyrocketed by 155.8 percent in the first quarter, ballooning to $114 million due to investments in long-term growth, according to a company release. XPO also recorded a bigger year-over-year net loss, taking a $14.5-million hit compared to the $2.7-million loss it saw a year ago.
On a division level, revenue for XPO’s freight brokerage business rose by more than 880 percent in the first quarter to $78.2 million. During that year period, acquisitions that contributed to the revenue rise included BirdDog Logistics, Turbo Logistics, Continental Freight Services and Kelron Logistics. Freight’s gross margin fell by 0.1 percent, year over year, to 12.9 percent, and operating loss rose to $3.8 million from $86,000.
Operating income on the expedited side of things fell from $1.8 million during the first quarter of 2012 to $753,000. Revenue growth rose by 6.5 percent to $23.9 million due to East Coast Charter’s acquisition. Freight forwarding actually saw an increase in gross margin percentage, with the number rising from 10.3 percent to 14.7 percent, and operating income rose by 54 percent to $372,000. – Jon Ross
XPO buys Interide Logistics, realizes strong 1Q
