ABF Logistics, a subsidiary of Fort Smith-based holding company ArcBest Corp., has acquired Logistics & Distribution Services LLC of Sparks, Nevada, for $25 million. The purchase included $17 million in cash and $8 million held in escrow until certain financial targets are reached over the next two years, according to a news release.
Logistics & Distribution Services was founded in 2001 and has $60 million in revenue annually. The company operates with about 30 employees, primarily located in Sparks. It also has an Allentown, Pennsylvania, location.
“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 the release. “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.”
Ross Kline, founder, president and CEO of Logistics & Distribution Services, will lead the new ABF Logistics branches in Sparks and Allentown. Kline has worked in transportation for nearly 35 years, with 25 years running dedicated brokerage.
The acquisition is part of ArcBest’s goal to grow its asset-light business and is the third purchase for ABF Logistics, which started in 2013. In December, the company acquired Bear Transportation Services LP, and in January 2015, it purchased Smart Lines Transportation Group.