So the transport company with the least pronounceable name (Norbert Dentressangle) will soon be no more. XPO Logistics’ takeover of the post box red trucks was a shock, not so much in itself but because XPO is not a household name this side of the pond. Here’s our 60-second guide to this now top 20 player in international logistics.
Headquartered in Greenwich, Connecticut.
2014 turnover: $2.4bn
2014 operating loss: $40.9m
Key facts (prior to ND purchase): 37,000-plus deliveries a day; 201 locations; 10,000 employees; more than 15,000 customers; 4,900 trucks plus relationships with 30,000 other carriers.
History: XPO was formed from a buyout of Express-1 Expedited Solutions (founded in 1989), led by Bradley S Jacobs, a successful entrepreneur, in June 2011. One year later XPO was listed on the NYSE. Since then it has expanded aggressively through acquisitions: Continental Freight Services (May 2012); Kelron Logistics (May 2012); BirdDog Logistics (October 2012); Turbo Logistics (October 2012); East Coast Air Charter (February 2013); Covered Logistics & Transportation (February 2013); 3PD (July 2013); Optima Service Solutions (November 2013); NLM (December 2013); Pacer International (March 2014); Atlantic Central Logistics (July 2014); and New Breed (September 2014).
The acquisition of ND is by far the largest deal in XPO’s history: $3.5bn versus the next largest, New Breed for $615m. One week later, XPO turned its attention back to its domestic market, taking on Bridge Terminal Transport Services for ‘just’ $100m.
Bradley who?
S Jacobs, that’s who (or ‘Brad’ to his friends, apparently). In July 1989 this former oil broker founded United Waste Systems; three years later it was listed on the NASDAQ, raising $41m. In August 1997, after 200 acquisitions (count ’em), he sold it for $2bn-plus.
One month later he founded United Rentals, which was listed on the NYSE in December of that year, raising nearly $100m. In July 2007, he entered into an agreement with Cerberus to buy United Rentals for $6.6bn. The deal broke down and Jacobs resigned a month later. At this point in his career, he had raised $6bn in capital and led the acquisitions of more than 500 companies.
Do you think the Nobby takeover will sate his desire this side of the pond? No, neither do we!
by Justin Stanton