XPO Logistics Loss Narrows; To Buy Bridge Terminal For $100 Milions
XPO Logistics Inc reported a smaller quarterly loss and struck its second deal in a week by agreeing to buy U.S.-based Bridge Terminal Transport for $100 million.
XPO said the Bridge deal would almost triple its drayage capacity - or ability to transport goods over short distances - to more than 2,000 independent owner operators, primarily on the U.S. East Coast.
"Drayage capacity is tight," Chief Executive Bradley Jacobs told Reuters. "Often we get requests from customers to move their freight, and if you don't have drayage capacity you could get into bad situations."
Charlotte, North Carolina-based Bridge is the largest U.S. asset-light drayage provider, with a network of 28 terminals and about 1,300 independent owner operators.
XPO, which signed its biggest-ever deal last week by agreeing to buy France-based Norbert Dentressangle SA for $3.5 billion including debt, has become a one-stop shop in transportation logistics, mainly through acquisitions.
"It's very likely that we'll do at least one or two more deals by the end of this year, either in North America or Europe," Jacobs said, without providing details.
The company raised its 2015 year-end run rate revenue target to at least $9.5 billion from $5.3 billion to reflect the Norbert and Bridge deals.
XPO's total revenue more than doubled to $703 million in the first quarter ended March 31, helped by its last-mile delivery and expedite businesses.
The company's net loss available to common shareholders narrowed to $15.4 million, or 20 cents per share, in the quarter from $29.1 million, or 70 cents per share, a year earlier.
Excluding items, XPO lost 13 cents per share.