Both XPO and New Breed have an intense commitment to cutting edge technology. For the full year 2013, New Breed's return on invested capital was approximately 38% and free cash flow conversion was approximately 71%.The acquisition is consistent with XPO's strategy of building a broad and integrated logistics offering by acquiring leading positions in sectors where it expects sustained demand for its services. New Breed is the leading U.S. provider of complex, technology-enabled contract logistics for blue chip companies in high-growth sectors ACL expands XPO's last mile services in e-commerce logistics Combined transaction value of approximately $652 million is expected to add more than $660 million of revenue and $83 million of EBITDA annually New Breed had revenue of approximately $597 million and adjusted EBITDA of approximately $77 million for the trailing 12 months ended June 30, 2014. ACL had revenue of $63 million and adjusted EBITDA of $6.2 million for the trailing 12 months ended June 30, 2014. For the past 10 years, New Breed has increased revenue at a compound annual growth rate of 16%, and realized a compound annual growth rate of 19% on adjusted EBITDA.
[1] Free cash flow conversion equals EBITDA minus capex, divided by EBITDA. At the closing, New Breed's chief executive officer, Louis DeJoy, will use $30 million of proceeds from the transaction to purchase restricted stock from the company. New Breed Logistics transforms the way organizations do business by building intelligent supply chains and providing comprehensive solutions. After closing, XPO expects to have approximately 10,000 employees and more than 200 locations.
ACL focuses on serving the burgeoning demand for e-commerce fulfillment by facilitating the time-sensitive, local movement of goods between distribution centers and the end-consumer. Morgan Stanley & Co. LLC is serving as financial advisor to New Breed, and Willkie Farr & Gallagher LLP is acting as legal advisor.On July 28, 2014, the company completed its acquisition of Atlantic Central Logistics for a cash purchase price of $36.5 million on a cash-free, debt-free basis, and excluding any working capital adjustments. The company further announced that it has completed the acquisition of Atlantic Central Logistics ("ACL"), a non-asset based provider of last mile logistics with 14 East Coast locations. Capital expenditures for 2013 were 4.2% of revenue and largely devoted to developing proprietary information technology. At the closing, New Breed's chief executive officer, Louis DeJoy, will use $30 million of proceeds from the transaction to purchase restricted stock from the company. In total, New Breed operates 71 facilities and employs approximately 6,800 people. Services range from distribution center operations and transportation management to … The company facilitates more than 31,000 deliveries a day throughout the U.S., Mexico and Canada.XPO Logistics has 148 locations and approximately 3,100 employees. Return on invested capital equals ongoing operations EBIT divided by the sum of net working capital and net PP&E. New Breed's service offering includes omni-channel distribution, reverse logistics, transportation management, freight bill audit and payment, lean manufacturing support, aftermarket support and supply chain optimization for customers in technology, telecom, e-commerce, aerospace and defense, medical equipment and manufacturing.Headquartered in High Point, N.C., New Breed's national footprint focuses on key logistics hubs such as Memphis, Chicago, Dallas-Fort Worth, Atlanta, Seattle and southern California. It handpicks its customers in industries with high-growth outsourcing opportunities for complex supply chain requirements. Mr. DeJoy transformed New Breed from a regional business with 10 employees into the preeminent U.S. provider of complex, industry-defining contract logistics services.
New Breed Acquisition On July 29, 2014, the company agreed to acquire New Breed for a purchase price of $615 million on a cash-free, debt-free basis, and assuming a normalized level of working capital. [1] Free cash flow conversion equals EBITDA minus capex, divided by EBITDA.
New Breed processes over 275,000 orders per day - typically premium, high-value products - through 71 facilities, and employs approximately 6,800 people. The value of the transaction represents a consideration of approximately 5.9 times trailing 12 months adjusted EBITDA.Founded in 1980, ACL provides last mile logistics through approximately 200 contracted carriers and 160 employees at 14 East Coast locations. We'll be able to deliver integrated, end-to-end logistics solutions for any company, of any size, with any combination of transportation needs. For more information: On July 29, 2014, the company agreed to acquire New Breed for a purchase price of $615 million on a cash-free, debt-free basis, and assuming a normalized level of working capital. New Breed manages millions of square feet of ISO-quality warehouse space across more than 70 distribution centers and employs more than 7,000 people worldwide. Its three business segments - freight brokerage, expedited transportation and freight forwarding - utilize relationships with ground, rail, sea and air carriers to serve over 14,000 customers in the manufacturing, industrial, retail, commercial, life sciences and government sectors. New Breed had revenue of approximately $597 million and adjusted EBITDA of approximately $77 … We welcome the ACL team to XPO Last Mile, where our combined expertise will be a compelling value to retailers and their channel partners." Karl Meyer, chief executive officer of XPO Last Mile, said, "The acquisition of ACL expands our presence in the high-growth e-commerce sector, where we manage more last-mile deliveries of heavy goods than any other logistics provider. The combination will double XPO's IT workforce to approximately 600 talented, forward-thinking IT professionals innovating new ways to serve customers.