ArcBest Corp. of Fort Smith on Wednesday announced that it's acquiring truckload freight brokerage MoLo Solutions LLC of Chicago in a $235 million cash deal.
The deal will double ArcBest's capacity, giving it access to more than 70,000 carriers and making it one of the top 15 truckload brokers in the nation, the company said in a news release.
The company said the deal will allow ArcBest to better serve its larger customers, increase revenue opportunities through cross-selling and improve value for company shareholders.
MoLo, or Modern Logistics, was founded in 2017 and is regarded as one of the fastest-growing companies in the industry. The company more than doubled its revenue last year, taking in $274 million, and is on pace to double it again this year, according to the release. MoLo expects about $600 million in revenue in 2021.
The acquisition is expected to close in the fourth quarter of 2021. The deal includes the potential for additional cash consideration based on adjusted earnings before interest, taxes, depreciation and amortization.
ArcBest Chair, President and CEO Judy McReynolds said the acquisition will accelerate the company's growth.
"Since its founding four years ago, MoLo has built a strong foundation and reputation for excellence based on trusted customer and carrier relationships, as well as a proven ability to offer unsurpassed service," she said in the release. "Since we began discussing a possible transaction several months ago, it became clear what a great fit MoLo was with ArcBest."
ArcBest's second-quarter revenue was the highest quarterly figure in its history. It hauled in $949 million, beating average Wall Street expectations by $29.2 million.