XPO Logistics Acquires Optima Service Solutions
XPO Logistics today announced that it has acquired Optima Service Solutions, LLC, a leading non-asset provider of last-mile logistics services for major retailers and manufacturers in the United States.
The cash purchase price was $26.6 million, excluding any working capital adjustments, with no assumption of debt. Optima had revenue of $35.7 million and adjusted EBITDA of $3.7 million, respectively, for the trailing 12 months ended October 31, 2013. The acquisition is expected to be immediately accretive to earnings, exclusive of any synergies with the company’s existing freight brokerage business.
Founded in 1997, Optima has generated a 16% compound annual growth rate over the past five years. The business uses its contractual network of independent carriers and technicians to facilitate the residential delivery of heavy goods in every U.S. zip code. Optima’s proprietary technology tracks the last-mile process through order entry, scheduling and service completion.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “Optima is a fast-growing, highly scalable leader in its space, and expands the capabilities of our last-mile division, 3PD. It enhances our ability to provide a seamless in-home delivery experience for end customers, particularly with large appliances and electronics. In addition, Optima benefits from the same powerful tailwind as 3PD: the growing inclination of retailers and manufacturers to outsource the last-mile logistics of heavy goods. We plan to leverage these synergies, and integrate Optima’s proprietary software with our last-mile technology. This will create a single, powerful customer service platform that doesn’t exist in the last-mile sector today.”