The first phase of XPO Logistics’ acquisition of France’s Norbert Dentressangle SA closed Monday, June 8, making XPO the world’s second-largest freight brokerage firm by net revenue, reported The Wall Street Journal. XPO purchased the 67 percent shares owned by the Dentressangle family for a total investment of US$3.53 billion.
Now, XPO Logistics will move ahead to acquire the remaining shares of Norbert Dentressangle at $245.50 per share. The might of the two companies together should boost its revenues to around $8.5 billion in annual revenue. The expanded company expects to have 52,350 employees at 863 locations in 27 countries.
The deal will give XPO access to a fleet of 7,700 owned trucks, 3,200 trucks contracted through owner-operators and access to an additional 12,000 independent carriers. Previously, XPO was non-asset based. XPO has also dropped the Dentressangle name and rebranded the fleet and entire operation under the name XPO Logistics. Some of the old Dentressangle trucks now bear the name “WeAreXPO” on the side. Through a series of acquisitions since 2010, XPO has expanded from $158 million in revenue in 2010 to $4.26 billion in 2014, when XPO acquired Pacer International and New Breed Logistics in separate transactions, worth a combined $950 million.
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