Transportation and logistics provider Cardinal Logistics announced Wednesday that it acquired last-mile delivery provider NRX Logistics.
The deal is expected to nearly double Cardinal’s annual final-mile deliveries to approximately 1.1 million. It also expands its high-touch delivery capabilities of heavy goods like furniture, appliances, bedding and exercise equipment.
Financial terms of the transaction were not disclosed. NRX generated $35 million in annual revenue prior to the announcement.
“This acquisition is part of Cardinal’s growing commitment to serving the last-mile space and providing the marketplace with a full-service delivery alternative for every type of big and bulky product,” said Cardinal Chairman Vin McLoughlin. “In addition to complementing the kinds of heavy goods we already deliver, it significantly expands our ability to perform complex last-mile services like white glove, product assembly and installation, all of which are must-haves for many online retailers.”
Founded in 1997, Concord, North Carolina-based Cardinal is a portfolio company of H.I.G. Capital, a Miami-based small- and mid-cap alternative investment firm with $43 billion of equity capital under management. Cardinal provides dedicated and logistics services throughout North America. The company’s dedicated segment provides outsourced service to approximately 65 customers in 170 locations with third-party carrier capacity of more than 10,000 tractors and trailers and over 3,200 drivers.
“We see great opportunity in the final-mile space, and the NRX acquisition will allow Cardinal to accelerate its growth in this area,” said H.I.G. Managing Director Ricky Stokes.
Stoughton, Massachusetts-based NRX has been a provider in the final-mile industry since 1981. The company operates more than 30 facilities across the U.S.
“I love this business, this industry, and I want to see our people and customers continue to thrive. I am excited to partner with the Cardinal team and look forward to working together to do great things for years to come,” said NRX President Geoff Chasin.
Chasin and the rest of the NRX leadership team will remain on board.
Transportation and logistics M&A advisory firm Tenney Group advised NRX in the transaction.
“Many current challenges and opportunities within logistics tie to final-mile delivery. Joining forces with proven final-mile specialists, like NRX, is allowing acquirers to capitalize on more market opportunities while reducing overall execution risks,” said President and CEO of Tenney Group Spencer Tenney.
The sale of NRX was the third final-mile transaction for Tenney Group in the past year. In August, USPack acquired Freight Rite and in early 2020 Forward Air (NASDAQ: FWRD) acquired Linn Star.