ACL's delivery patterns complement those of XPO Last Mile, allowing us to leverage capacity as we increase our volume. At the closing, New Breed's chief executive officer, Louis DeJoy, will use $30 million of proceeds from the transaction to purchase restricted stock from the company. In total, New Breed operates 71 facilities and employs approximately 6,800 people. XPO Logistics, Inc. has announced that it has entered into a definitive agreement to acquire New Breed Holding Company and completed the acquisition of Atlantic Central Logistics (ACL).GREENWICH, Conn. - XPO Logistics, Inc. ("XPO Logistics" or "XPO" or the "Company") (NYSE: XPO) has announced that it has entered into a definitive agreement to acquire New Breed Holding Company ("New Breed"), the preeminent U.S. provider of non-asset based, complex, technology-enabled contract logistics for blue chip customers. The value of the transaction represents a consideration of approximately 8.0 times trailing 12 months adjusted EBITDA. Credit Suisse Securities (USA) LLC is serving as financial advisor to XPO Logistics, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor. [1] Free cash flow conversion equals EBITDA minus capex, divided by EBITDA.
Both XPO and New Breed have an intense commitment to cutting edge technology. Mr. DeJoy transformed New Breed from a regional business with 10 employees into the preeminent U.S. provider of complex, industry-defining contract logistics services.
[1] Free cash flow conversion equals EBITDA minus capex, divided by EBITDA. Return on invested capital equals ongoing operations EBIT divided by the sum of net working capital and net PP&E.Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, "We're making a transformational move in acquiring New Breed - one that gives us critical mass and elevates our service offering. Return on invested capital equals ongoing operations EBIT divided by the sum of net working capital and net PP&E. New Breed Acquisition On July 29, 2014, the company agreed to acquire New Breed for a purchase price of $615 million on a cash-free, debt-free basis, and assuming a normalized level of working capital. For more information: We'll gain leadership in one of the most financially attractive sectors of contract logistics, and we'll use our new platform to engage customers in our broader offering, just as we've done over the past 12 months with our acquisitions of 3PD, NLM and Pacer. Karl Meyer, chief executive officer of XPO Last Mile, said, "The acquisition of ACL expands our presence in the high-growth e-commerce sector, where we manage more last-mile deliveries of heavy goods than any other logistics provider. One of the Triad’s top logistics companies, New Breed Holding Co., is being sold to a Connecticut company for $615 million in cash. At the closing, New Breed's chief executive officer, Louis DeJoy, will use $30 million of proceeds from the transaction to purchase restricted stock from the company. New Breed's service offering includes omni-channel distribution, reverse logistics, transportation management, freight bill audit and payment, lean manufacturing support, aftermarket support and supply chain optimization for customers in technology, telecom, e-commerce, aerospace and defense, medical equipment and manufacturing.Headquartered in High Point, N.C., New Breed's national footprint focuses on key logistics hubs such as Memphis, Chicago, Dallas-Fort Worth, Atlanta, Seattle and southern California. Morgan Stanley & Co. LLC is serving as financial advisor to New Breed, and Willkie Farr & Gallagher LLP is acting as legal advisor.On July 28, 2014, the company completed its acquisition of Atlantic Central Logistics for a cash purchase price of $36.5 million on a cash-free, debt-free basis, and excluding any working capital adjustments. The company further announced that it has completed the acquisition of Atlantic Central Logistics ("ACL"), a non-asset based provider of last mile logistics with 14 East Coast locations. In addition, many of XPO's strategic accounts utilize the kind of high-quality, customized solutions New Breed offers.