ABF Logistics, a subsidiary of publicly traded ArcBest Corp. of Fort Smith, said Friday that it will acquire Logistics & Distribution Services LLC of Sparks, Nevada, in a deal worth $25 million.
In a news release, ABF said the deal reflects a cash consideration of $17 million paid at closing and an additional $8 million that will be held in escrow and released upon achievement of certain financial targets over the next two years.
Founded in 2001, LDS has about 30 employees at sites in Sparks and Allentown, Pennsylvania. The company, which has about $60 million in annual revenue, provides dedicated truckload capacity across the country through an asset-light operating model.
“This acquisition complements our business nicely by adding to our existing services, specifically in deploying dedicated capacity, which will increase the breadth of our available solutions for customers,” ABF Logistics President Jim Ingram said in a news release. “We like the customer-centric model LDS has built. This purchase is another important step in our strategy to seamlessly provide customers with the full logistics services they require and grow the percentage of total revenue that comes from the asset-light businesses operated by ArcBest.”
ABF said Ross Kline, founder, president and CEO of LDS, will stay with the company, leading the new ABF Logistics branches in Sparks and Allentown.
ArcBest has said it wants to grow its asset-light businesses “organically and through acquisition.” The LDS deal will be its third acquisition, following deals to buy Bear Transportation Services of Plano, Texas, in December 2015 and Smart Lines Transportation Group of Oklahoma City in January 2015.
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