XPO Completes Acquisition of Logistics Firm New Breed
XPO Logistics said it has completed the acquisition of specialized logistics firm New Breed Holding Co. for $615 million.
The purchase adds about $597 million in revenue to XPO and $77 million in earnings before interest, taxes, depreciation and amortization.
With the acquisition, XPO said it expects to have full-year EBITDA earnings of at least $150 million and revenue of $3 billion.
New Breed provides logistics for industries with “high-growth outsourcing opportunities,” including aerospace, defense, telecom, technology and e-commerce, according to XPO.
The acquisition was financed with cash on hand and the proceeds from the sale of $500 million in senior notes.
Louis DeJoy, former CEO at New Breed, will head XPO’s contract logistics business after purchasing $30 million in restricted XPO stock.
“DeJoy will continue to lead the operation he has been instrumental in growing since 1983,” XPO said in a statement.
