The third-party logistics subsidiary of ArcBestSM agreed to purchase Sparks, Nev.-based truckload capacity provider Logistics & Distribution Services for $25 million, according to a statement from the company.
ABF Logistics has acquired asset-light truckload freight broker Logistics & Distribution Services, LLC (LDS) for $25 million, subject to customary post-closing adjustments, according to a statement from the company.
The deal includes a cash consideration of $17 million, plus an additional $8 million to be held in escrow and released when the company reaches certain financial targets.
Headquartered in Sparks, Nev., LDS employs about 30 people in Sparks, along with another facility in Allentown, Pa. and has annual revenues of $60 million.
Ross Kline, founder, president and chief executive officer of LDS, and a 35-year transportation industry veteran, will stay with the company and lead new ABF Logistics branches in Sparks and Allentown.
It’s the third purchase by ABF Logistics since its founding in 2013. The company purchased Plano, Texas-based Bear Transportation Services for $26 million last December and Oklahoma City-based Smart Lines Transportation Group in January 2015.
“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,” ABF Logistics President Jim Ingram said of the deal. “We 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.”
“This is a perfect alignment of two unique logistics providers,” added Kline. “Our current and future customers will have more solutions available with the combination of LDS and the ABF Logistics team.”
ABF Logistics, a wholly-owned subsidiary of ArcBestSM, provides third-party logistics services including brokerage, intermodal and ocean transportation, as well as warehousing and household moving services.
ABF Logistics acquires asset-light TL broker
