Transportation and Logistics Systems (TLSS) announced Thursday one of its subsidiary companies entered into an agreement to acquire JFK Cartage. The deal is expected to double TLSS’ revenue and expand its presence around JFK International Airport.
Cougar Express will acquire all of the outstanding stock of Inwood, New York-based JFK Cartage for approximately $1.7 million. At closing, $500,000 will be paid in cash with the remainder paid in the form of a promissory loan and the assumption of debt.
The deal is expected to close at the end of July subject to final due diligence.
“Combining Cougar Express and JFK Cartage should generate significant revenue enhancement, operational efficiencies and cost savings, while providing us with a larger and much more functional facility,” Sebastian Giordano, chairman and CEO of TLSS, stated in a press release.
Founded in 2008, JFK Cartage provides warehousing, cross-docking, pickup and delivery, and general trucking services out of a 30,000-square-foot facility located near the airport, which is a major import-export gateway. The company specializes in air and trade show freight. Its fleet ranges in size from sprinter vans to tractors moving 53-foot trailers. JFK Cartage’s customer list includes 95 commercial accounts as well as residential customers, to which it provides final-mile delivery.
JFK Cartage is “believed to be one of the largest leading cartage agents serving the New York Tri-State area,” the announcement read.
“This JFK Cartage acquisition, if closed when expected, would dovetail very well with Cougar’s upcoming space requirements, as Cougar is scheduled to vacate its current premises no later than September 30, 2022.”
The deal follows a similar announcement from TLSS (OTC: TLSS) last month. The company said it was acquiring Freight Connections, a warehousing, consolidating, distribution and cartage services provider in the tri-state area.
New York-based Cougar Express provides pickup, warehousing and delivery services in the same region. It specializes in one- to four-person white-glove delivery. The 30-year-old company was acquired by TLSS a year ago.
TLSS (OTC: TLSS) provides end-to-end e-commerce fulfillment services to large online retailers. It recorded annual revenue of $5.5 million in 2021, a more than $20 million decline as it exited unprofitable Amazon-related business, which was conducted by former subsidiaries.
On Friday, TLSS said it exited its ownership of Shyp FX, which serviced FedEx (NYSE: FDX) routes in New Jersey. An asset sale generated $825,000 in gross proceeds from the divested operation.
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