ArcBest to Acquire ‘Fastest-Growing’ Truckload Freight Brokerage in $235 MILLION Deal
Fort Smith, AR – ArcBest announced this week its growing its portfolio through the acquisition of a Chicago-based truckload freight brokerage company in a reported $235 million all-cash deal.
On Wednesday, the Fort Smith, AR-based company said it has entered into a definitive agreement to acquire MoLo Solutions, LLC.
Terms of the transaction include a cash payment at closing of $235 million from available ArcBest funds and is expected to close in the fourth quarter of 2021.
In addition, there is potential for additional cash consideration based on achievement of Adjusted EBITDA targets for years 2023 through 2025, ArcBest stated.
The acquisition doubles ArcBest’s available capacity, creating a Top 15 U.S. truckload broker with access to over 70,000 carrier partners, the companies stated in a joint press release.
“MoLo has been able to reach $600 million in annual revenues with only 500 shippers,” MoLo’s CEO, Andrew Silver, said at the time of the announcement. “In doing this deal, we can now tap into ArcBest’s 30,000 existing shippers and offer them the same level of service we’ve been providing our existing customers.”
“There is tremendous market opportunity in the truckload brokerage business, and we are pleased with continued growth and progress in that area,” ArcBest president of Asset-Light Logistics and chief yield officer, Danny Loe, stated.
In business since 2017, MoLo was ranked #1 in the Transportation & Logistics industry on the “2021 Inc. 5000 Fastest-Growing Private Companies in America.”
MoLo revenue in 2020 equaled $274 million, an increase of more than 100% over the previous year, and MoLo expects revenue of approximately $600 million in 2021, the companies stated.
ArcBest is perhaps best known in the trucking industry as the parent company to ABF Freight and Panther Premium Logistics.
Other businesses in its portfolio include FleetNet America — a fleet maintenance and repair service — and household goods moving service U-Pack.
It was founded in 1923 and boasts 14,000 employees across more than 250 campuses and service centers.