J.B. Hunt Transport Services Inc. (Nasdaq: JBHT) of Lowell announced Thursday that it's acquiring BNSF Logistics, the brokerage subsidiary of BNSF Railway Co. of Fort Worth.
Terms of the deal were not released. The transaction is expected to close by the end of the year.
The BNSF segment provides third-party logistics services for the movement of full truckload, flatbed, temp-controlled, drayage, expedited and less-than-truckload services through both an employee and agent model. The segment will become part of J.B. Hunt’s Integrated Capacity Solutions division.
BNSF Logistics also provides warehouse, retail specialty, heavy-haul and project services, which are not included in the transaction. The company operates more than 25 offices throughout North America.
“As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with [third-party logistics] services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°,” J.B. Hunt CEO John Roberts said in a statement. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.”
The companies said that after the deal is completed, J.B. Hunt will sign a long-term contract to continue to provide third-party logistics services to BNSF Railway.
J.B. Hunt recently posted its third consecutive quarterly drop in profits as transportation firms continue to weather a so-called freight recession. The company's Integrated Capacity Solutions division, which is absorbing BNSF Logistics, posted a loss of $4.4 million in the quarter as revenue per load declined by 24%.
