We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » XPO buys truck broker Covered Logistics in $11 million cash and stock transaction
newsworthy

XPO buys truck broker Covered Logistics in $11 million cash and stock transaction

February 28, 2013
Mark B. Solomon
No Comments

XPO Logistics, Inc., a nonasset-based third-party logistics provider with ambitious expansion plans, said late yesterday it acquired truck freight broker Covered Logistics & Transportation LLC, for $8 million in cash and $3 million in XPO stock.

Covered Logistics, with offices in Dallas and in Lake Forest, Ill., a Chicago suburb, was founded in 2005. Its co-founders, Tuck Jasper, Paul Jasper, and Patrick Gillihan, will continue to lead the operation, which is being rebranded as XPO Logistics. Covered Logistics works with 4,000 motor carriers and is strong in the manufacturing, postal, consumer, and energy sectors, XPO said in a statement yesterday.

The acquisition is the second that Greenwich, Conn.-based XPO has made this year and the sixth in the past 14 months. Earlier this month, it acquired East Coast Air Charter Inc., a Statesville, N.C.-based air cargo charter broker, in a $9.25 million all-cash deal. Bradley S. Jacobs, XPO's chairman and CEO, said the company plans to acquire companies that, in aggregate, generated $300 million in annual revenue in 2012. Jacobs told DC VELOCITY yesterday that by year's end XPO should have revenue of about $650 million to $750 million, a figure that includes the revenue brought in by acquired companies.

After the markets closed yesterday, XPO reported full-year operating revenue of $278.5 million, compared to $147.3 million in 2011. The company's gross margin, which subtracts the costs of purchased transportation, totaled $40.8 million, up from $29.8 million in 2011.

XPO reported a full-year operating loss of $27.9 million, compared with an operating profit in 2011 of $1.7 million. The company's sales, general, and administrative expenses increased by more than $40 million year-over-year as it incurred the upfront costs of adding facilities, staff, and technology, among other things. XPO, which operates out of 57 facilities in the U.S. and three in Canada, plans to add 400 employees in 2013, which will bring headcount to about 1,300, Jacobs said. Most of the workforce additions will be sales-related, he said.

Jacobs pointed to XPO's year-over-year gross margin improvements to demonstrate that, on a daily operating basis, the company is functioning well. "We are not hauling unprofitable freight," he said.

XPO operates in the truck brokerage, freight forwarding, and expedited transportation segments. But it focuses most of its attention on the highly fragmented, $50 billion a year truck brokerage market. Jacobs' goal is to control about 10 percent of the brokerage market, up from an estimated 1 percent today.

Transportation Trucking Transportation 3PL
KEYWORDS XPO Logistics
  • Related Articles

    XPO buys air charter broker in $9.25 million cash deal

    XPO buys Canadian broker for $8 million in cash

    C.H. Robinson buys Phoenix International for $635 million in cash, stock

  • Related Events

    Digital Transformation in Supply Chain & Logistics

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 11 21 thumb

Ocean Sector Shaping the Next Shipageddon

DCV-TV 4: Viewer Contributed
If you're a shipper, it's never good when a rep for an ocean carrier tells you, "You better sit down before you read this." We've been seeing astoundingly high increases in the ocean sector and they seem to have staying power. While the ocean carriers used blank sailings last year to tip the balance of supply and...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing