• Larry Thomas

XPO Logistics acquiring intermodal heavyweight Pacer International

3PD parent says deal will boost revenues to $2 billion

GREENWICH, Conn. — XPO Logistics, parent company of home delivery specialist 3PD, announced Monday it has agreed to acquire Pacer International, a major provider of intermodal transportation services.

The deal, valued at about $335 million, is XPO's 11th acquisition in two years and will double the company's annual revenue "run rate" to $2 billion, officials said. Pacer had revenues of $1 billion for the 12 months ended Nov. 30.

"The transaction will make us the third largest North American provider of intermodal services, one of the fastest-growing areas of transportation logistics," said Bradley Jacobs, chairman and CEO of XPO. "We'll also be the largest provider of intermodal services in the burgeoning cross-border Mexican market, where growth is being driven by a trend toward near-shoring manufacturing."

Jacobs, who will remain as CEO of the combined companies, said the latest acquisition "will be significantly and immediately accretive to our earnings and accelerate growth company-wide."

Intermodal transportation involves using more than one method of transportation for a single shipment. Typically, it means moving a container by rail and truck to its final destination.

Jacobs said the acquisition is consistent with XPO's strategy of building a premier supply chain offering by acquiring leading position in the fastest-growing sectors of logistics.

3PD, the largest provider of heavy goods, last-mile logistics, was acquired in August. Last month, XPO acquired NLM, the leading provider of Web-based freight management services for companies specializing in expedited transportation.

3PD's customer based includes numerous furniture retailers and manufacturers.

The latest acquisition calls for shareholders of Pacer, whose stock is traded on the NASDAQ over-the-counter market, to receive $6 in cash and $3 in XPO stock for each share of Pacer stock.

XPO said Daniel Avarmovich, CEO of Pacer, and "substantially all of Pacer's executives," will remain with the company.

Larry ThomasLarry Thomas | News Editor, Furniture Today

Hi, I'm Larry Thomas, news editor of Furniture/Today. Since joining the staff in 1989, I’ve written about topics ranging from wicker chairs to proxy battles at public companies. In my new post as news editor, I oversee the news coverage for both the print edition and furnituretoday.com. I look forward to discussing key industry issues in this forum, and I welcome your thoughts and opinions.

Research Store


  • Centered on retail: From truck stops to new stores and A.I. marketing

    Camera Icon More Videos

Web Directory Search
Search for Products/Companies

2017 Retail Rankings

The List 2017

Get exclusive rankings of Furniture Today's top industry players including Top 100 Furniture Stores, Top 25 Bedding Retailers and leading e-Tailers. Get the stats now! Sponsored by Surya.

RSA Insights & Intelligence


RSA Insights & Intelligence gives you, the retail sales associates, critical intelligence and insights. We make it easier for you to sell by providing actionable tips and key takeaways you can and should use for every sale. Check out our latest two articles:
* How to use an implied close
* The low cost of mattresses