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- Supply chain logistics company ArcBest (NASDAQ:ARCB) has agreed to acquire Chicago-based truckload freight brokerage MoLo Solutions for $235M in cash.
- The deal, expected to close in 4Q21, also includes the potential for additional cash consideration based on achievement of adj. EBITDA targets for years 2023 through 2025.
- Founded in 2017, MoLo is a third-party logistics company that has seen a rapid growth in its customer base and revenue. The company's 2020 revenue equaled $274M, up more than 100% Y/Y. For 2021, MoLo expects revenue of ~$600M.
- The acquisition doubles ArcBest's available capacity, creating a Top 15 U.S. truckload broker with access to over 70,000 carrier partners, while also expanding ArcBest's revenue opportunities through increased cross-selling potential, better ability to secure new customers and a strong presence in the logistics innovation hub of Chicago. It will also enhance ArcBest's ability to serve larger customers and drive sustainable earnings growth, with accretion of EPS before acquisition-related amortization anticipated in the first full year of operations.
- Judy R. McReynolds, ArcBest Chairman, President and CEO, commented, "We are pleased to add MoLo's significant capabilities and talent to our truckload brokerage offering, allowing us to better meet the critical needs of our customers, deliver comprehensive supply chain solutions and accelerate our company's continued growth. ArcBest's timely investment further accelerates growth by increasing the scale of our asset-light business, and MoLo's proven ability to cultivate significant shipment growth with large shippers will be highly complementary and synergistic. This acquisition capitalizes on our terrific business momentum and positions us to enhance value for all of our stakeholders, including our customers, employees, communities and ArcBest shareholders."