Health care firm enters transport and logistics market
Florida’s Pacer Health Corp., which has focused on financially distressed businesses in the health care arena, has gained a presence in the transportation, logistics and warehousing market by acquiring the assets of Inwood, N.Y.-based Cargo Connection Logistics Corp. No financial details were disclosed.
Cargo Connection reported $17.2 million in revenue for last year along with a net loss attributable to common stockholders of $1.5 million. The acquired assets include intellectual property, warehouse leases and general order bonded warehouse licenses among other items.
Pacer owns and runs a number of acute care hospitals, medical treatment centers and psychiatric care facilities in non-urban areas throughout the U.S. Southeast. The acquisition marks its entry into new turnaround market segments under its newly established subsidiary Pacer Logistics LLC.
Tina Vidal, the corporation’s chief operating officer of its non-medical division, said: 'We are excited about the addition of Cargo Connection's assets to our portfolio. The acquisition will increase our top line revenue and potential future earning power. Furthermore, this acquisition has solidified our commitment to protecting our shareholders through the expansion into other industries.'
Cargo Connection said of the deal: “The acquisition will allow Cargo to expand its current service offering of warehousing, trucking and air freight, and distribution and logistics services throughout the United States and to our international clientele. The company will continue to service its current clients without any interruption of service. We are excited about this recent development and look forward to growing our business.”