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XPO Logistics Inc. said it will acquire intermodal freight carrier Pacer International Inc. in a transaction valued at $335 million.
The purchase will double XPO's expected annual revenue to $2 billion, the companies said in a Jan. 6 statement.
"We've viewed Pacer as a valuable acquisition candidate for quite a while. This transaction will make us the third largest North American provider of intermodal services, one of the fastest-growing areas of transportation logistics," Bradley Jacobs, chairman and CEO of XPO, said in the statement. "We expect this transaction to be significantly and immediately accretive to our earnings and accelerate our growth company-wide."
Jacobs will retain his position in the new company, which will still be known as XPO. Daniel Avramovich, chairman and CEO of Pacer, will continue to lead Pacer's operations, which will become a new unit of XPO. Most of Pacer's executives will remain, the companies said.
