XPO Logistics Inc. said Dec. 11 it has agreed to purchase NLM, a web-based expediter, from Landstar System for $87 million in cash.
NLM has a proprietary online auction system for carriers to bid on loads and generated $9.8 million in earnings before interest and taxes in the 12 months ended in November, according to XPO. Landstar, based in Jacksonville, Fla., ranks No. 9 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Landstar announced an after-tax gain on the sale of $32 million, or 71 cents per share, and a special dividend of 35 cents per share.
“The addition of NLM, the largest Web-based expediter in North America, will give us an entry into managed transportation — an area of logistics that has been of keen interest to us for some time,” XPO Logistics CEO Bradley Jacobs said in a statement.
The supply chain companies generated revenue of $17.1 million and net income of $2.7 million in the first three quarters of 2013, Landstar’s statement said.
Landstar CEO Henry Gerkens said in a statement that the unit being sold “is better suited for a company store-type operation rather than Landstar’s core agent-based model.”
The deal is expected to close by mid-January 2014.
XPO, based in Greenwich, Conn., ranks No. 45 on the Transport Topics Logistics Top 50 list of the largest logistics companies in the North America.
Landstar also announced an increase of 3 million shares in its stock repurchase program.