FORT SMITH, Ark., Sept. 2, 2016 /PRNewswire/ -- ABF
Logistics®, an ArcBestSM company (Nasdaq:
ARCB), today announced it has acquired Logistics & Distribution
Services, LLC (LDS), a private logistics and distribution company
headquartered in Sparks, Nevada,
effective today, in a transaction valued at $25.0 million, subject to normal post-closing
adjustments. The transaction reflects cash consideration of
$17.0 million paid at closing and an
additional $8.0 million that will be
held in escrow and released upon achievement of certain financial
targets over the next two years.
LDS has approximately 30 employees, primarily located in
Sparks, with an additional
location in Allentown,
Pennsylvania. The company, founded in 2001, has
approximately $60 million in annual
revenue and provides dedicated truckload capacity across
the United States through an
asset-light operating model.
"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," said ABF Logistics President Jim Ingram. "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."
Ross Kline, founder, president
and CEO of LDS, will stay on and lead these new ABF Logistics
branches in Sparks and
Allentown. Kline's career spans
nearly 35 years in transportation, with 25 years in running a
dedicated brokerage model. "Ross shares our values and brings
decades of experience to our team," said Ingram. "We are excited to
welcome him and the LDS team as part of our
organization."
"This is a perfect alignment of two unique logistics providers,"
said Kline. "Our current and future customers will have more
solutions available with the combination of LDS and the ABF
Logistics team. We look forward to joining ABF Logistics and the
broader ArcBest organization, including ABF Freight® and
Panther Premium Logistics®."
In keeping with ArcBest's stated goals to grow the asset-light
businesses organically and through acquisition, this is the third
purchase for ABF Logistics, which formed in 2013. Previously, the
company purchased Plano,
Texas-based Bear Transportation Services in December 2015 and Oklahoma City-based Smart Lines Transportation
Group in January 2015.
ABOUT ABF LOGISTICS
ABF Logistics® provides third-party logistics
services including brokerage, intermodal and ocean transport,
warehousing and household moving. We have The Skill and The
Will® to build and deliver seamless, customized supply
chain solutions powered by advanced technology with access through
a single point of contact.
ABOUT ARCBEST
ArcBest Corporation® (Nasdaq: ARCB) solves complex
logistics and transportation challenges. Our companies and brands —
ABF Freight®, ABF Logistics®, Panther Premium
Logistics®, FleetNet America®,
U-Pack® and ArcBest Technologies — apply The Skill and
The Will with every shipment and supply chain solution, household
move or vehicle repair. ArcBest finds a way.
For more information, visit arcb.com, abf.com,
pantherpremium.com, fleetnetamerica.com and upack.com. ArcBest
Corporation®. The Skill & The Will®.
FORWARD LOOKING STATEMENTS
Certain statements and information in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Terms such as
"anticipate," "believe," "could," "estimate," "expect," "forecast,"
"foresee," "intend," "may," "plan," "predict," "project,"
"scheduled," "should," "would" and similar expressions and the
negatives of such terms are intended to identify forward-looking
statements. These forward-looking statements are based on
management's beliefs, assumptions, and expectations based on
currently available information, are not guarantees of future
performance, and involve certain risks and uncertainties (some of
which are beyond our control). Although we believe that the
expectations reflected in these forward-looking statements are
reasonable as and when made, we cannot provide assurance that our
expectations will prove to be correct. Actual outcomes and results
could materially differ from what is expressed, implied, or
forecasted in these statements due to a number of factors,
including, but not limited to: a failure of our information
systems, including disruptions or failures of services essential to
our operations or upon which our information technology platforms
rely, data breach, and/or cybersecurity incidents; union and
nonunion employee wages and benefits, including changes in required
contributions to multiemployer plans; competitive initiatives and
pricing pressures; governmental regulations; environmental laws and
regulations, including emissions-control regulations; the cost,
integration, and performance of any future acquisitions;
relationships with employees, including unions, and our ability to
attract and retain employees and/or independent owner operators;
unfavorable terms of, or the inability to reach agreement on,
future collective bargaining agreements or a workforce stoppage by
our employees covered under ABF Freight's collective bargaining
agreement; general economic conditions and related shifts in market
demand that impact the performance and needs of industries we serve
and/or limit our customers' access to adequate financial resources;
potential impairment of goodwill and intangible assets;
availability and cost of reliable third-party services; litigation
or claims asserted against us; self-insurance claims and insurance
premium costs; availability of fuel, the effect of volatility in
fuel prices and the associated changes in fuel surcharges on
securing increases in base freight rates, and the inability to
collect fuel surcharges; increased prices for and decreased
availability of new revenue equipment, decreases in value of used
revenue equipment, and higher costs of equipment-related operating
expenses such as maintenance and fuel and related taxes; the loss
of key employees or the inability to execute succession planning
strategies; the impact of our brands and corporate reputation; the
cost, timing, and performance of growth initiatives; default on
covenants of financing arrangements and the availability and terms
of future financing arrangements; timing and amount of capital
expenditures; seasonal fluctuations and adverse weather conditions;
regulatory, economic, and other risks arising from our
international business; and other financial, operational, and legal
risks and uncertainties detailed from time to time in our
Securities and Exchange Commission public filings.
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, refer to "Risk Factors" in Part I, Item 1A in our 2015
Annual Report on Form 10-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events, or otherwise.
Investor Relations
Contact: David Humphrey
|
Media Contact: Kathy
Fieweger
|
Vice President –
Investor Relations
|
Phone:
479-719-4358
|
Phone:
479-785-6200
|
Email:
kfieweger@arcb.com
|
Email:
dhumphrey@arcb.com
|
|
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SOURCE ArcBest Corporation