Pacer International, Inc. (Acquired by XPO Logistics 2014)
January - The purchase was composed of a mix of cash and paper. It was part of XPO Logistics' attempt to diversify into faster growing areas of logistics such as 'last mile delivery' and intermodalism. The company's most recent purchases, before the Pacer deal, were those of the 'last mile' providers 3PD and Optima, as well the transportation management web-site NLM in 2013.
Specifically with the acquisition of Pacer, XPO Logistics was looking to tap into the cross-border market between Mexico and the US which was growing strongly and in which Pacer had a substantial market presence. XPO would now be the third largest intermodal company by revenue in the US. The existing management of Pacer would be kept in place.
XPO Logistics was already one of the fifty largest logistics service providers in the US and it appeared to be intent on continuing to build-up a broad based business across the logistics sector. The company's strategy was to create economies of scale across a number of transport markets by buying-up providers and developing relationships with large customers who could provide base volumes and to which it could cross-sell. The different elements of the business would be integrated through a common technology platform. Clearly the intention was to build a very large logistics service provider in North America which had the potential to drive consolidation in the sector.
Bradley Jacobs, the owner of XPO Logistics, had a record of building brokerage and rental companies. However, apart from a solid waste management company which had some exposure to waste transportation, XPO was his first experience of building a logistics service provider.
Pacer International Inc. is an asset-light transportation and global logistics services provider.
It is one of the premier intermodal transportation providers in North America. It also offers logistics solutions including global international freight forwarding and non-vessel-operating common carrier (NVOCC) services, highway brokerage, warehousing and distribution, and supply chain management services.
The company is headquartered in Dublin, Ohio and offers its services on a national and international scale.In 2012 its revenues were $1.42bn. For the nine months to September 2013, the company revenues amounted to $720.7m.