US-based company, ArcBest, has agreed to acquire a Chicago-based truckload freight brokerage for a cash payment of $235 million USD.
This move is expected to see ArcBest become a top 15 US truckload broker with access to more than 70,000 carrier partners.
Founded in 2017, MoLo has outpaced industry benchmarks by rapidly growing its customer base and revenue – recently ranking number one in the Transportation & Logistics industry on the ‘2021 Inc. 5000 Fastest-Growing Private Companies in America’.
MoLo revenue in 2020 was $274 million USD, an increase of more than 100 per cent over the previous year, and MoLo expects revenue of approximately $600 million USD in 2021.
“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,” said Judy R. McReynolds, ArcBest Chairman, President and CEO.
“Since its founding four years ago, MoLo has built a strong foundation and reputation for excellence based on trusted customer and carrier relationships, as well as a proven ability to offer unsurpassed service. Since we began discussing a possible transaction several months ago, it became clear what a great fit MoLo was with ArcBest.
“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 capitalises on our terrific business momentum and positions us to enhance value for all of our stakeholders, including our customers, employees, communities and ArcBest shareholders.”
ArcBest president of Asset-Light Logistics and chief yield officer, Danny Loe, said: “There is tremendous market opportunity in the truckload brokerage business, and we are pleased with continued growth and progress in that area. Our relationships are built on trust. Providing a seamless and significantly enhanced truckload brokerage offering will strengthen and grow our customer relationships. We’re excited to have Andrew Silver, an experienced Chicago-based leader, overseeing that offering for ArcBest.”
Andrew Silver, CEO of MoLo, said: “We have spent the last four years building a great organisation, with a vision to create the best experience in the industry for our employees, drivers, and shipper partners. We believe this partnership with ArcBest further advances the opportunity we have to achieve our vision. MoLo has been able to reach $600 million in annual revenues with only 500 shippers; 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.
“In addition to that, we can now offer our customers a breadth of services we couldn’t before, including owned assets, increased drop trailer capabilities, LTL, expedited, outsourced transportation management, and more. I am incredibly thankful that ArcBest sees the same potential in our people that we do. Together, we are going to accomplish great things.”