XPO adds Bridge Terminal purchase to Norbert acquisition
May 12, 2015
XPO Logistics has reported a smaller quarterly loss and struck its second deal in a week by agreeing to buy US-based Bridge Terminal Transport for $100m.
XPO said the Bridge deal would almost triple its drayage capacity – or ability to transport goods over short distances – to more than 2000 independent owner operators, primarily on the US east coast.
"Drayage capacity is tight," chief executive Bradley Jacobs told Reuters. "Often we get requests from customers to move their freight, and if you don't have drayage capacity you could get into bad situations."
North Carolina-based Bridge is the largest US asset-light drayage provider, with a network of 28 terminals and about 1300 independent owner operators.
XPO, which signed its biggest-ever deal last month by agreeing to buy France-based Norbert Dentressangle for $3.5bn including debt, has become a one-stop shop in transportation logistics, mainly through acquisitions.
"It's very likely that we'll do at least one or two more deals by the end of this year, either in North America or Europe," Jacobs said, without providing details.
The company raised its 2015 year-end run rate revenue target to at least $9.5bn from $5.3bn to reflect the Norbert and Bridge deals. XPO's total revenue more than doubled to $703m in the first quarter ended March 31, helped by its last-kilometre delivery and expedite businesses.
The company's net loss available to common shareholders narrowed to $15.4m, or 20 cents per share, in the quarter from $29.1m, or 70 cents per share, a year earlier. Excluding items, XPO lost 13 cents per share.