Earlier today, Greenwich, Conn.-based global contract logistics services provider GXO Logistics said it has acquired Irving, Texas-based PFSweb, a provider of e-commerce order fulfillment services.
Under the terms of the agreement outlined by GXO, GXO and PFS entered into a definitive agreement in which GXO will acquire PFS for $7.50 per share which it said represents an equity value of around $181 million.
Established in 1994, PFS serves global luxury brands and has 11 distribution centers throughout North America, Belgium, and the United Kingdom. GXO officials said that the company has deep expertise delivering seamless, high touch fulfillment in key growth verticals, including health & beauty, jewelry and collectibles, activewear, and prestige CPG categories.
“PFS is an ideal acquisition for GXO: it enhances our exposure to new high-growth verticals in North America and adds important capabilities to our offerings,” said GXO CEO Malcolm Wilson in a statement. “Over the past 25 years, the PFS team has established a successful track record in both direct to consumer and B2B channels, and they’ve built a rock-solid reputation with many of the world’s most iconic brands by deploying an order fulfillment platform that rivals the largest enterprise 3PL providers in the industry. We’re excited to bring them on board and look forward to driving additional shareholder value through disciplined capital allocation and continued investment in high growth opportunities.”
GXO highlighted various strategic highlights of this acquisition, including:
A GXO spokesperson told LM that this represents a strategic acquisition for the company.
And he explained it will increase GXO’s exposure to high-growth verticals in the U.S. and expand its industry-leading suite of capabilities, also noting it will further expand GXO’s service offerings and position it for even more success in the future.
“We've got a long runway for growth in the United States and the acquisition of PFS is a significant step as we continue to realize GXO's full potential,” said Eduardo Pelleissone, President Americas and Asia Pacific, GXO, in a statement provided to LM. “Once the transaction is completed, we'll benefit by adding to our customer portfolio in short cycle, high volume product categories, leveraging PFSweb’s client relationships, and capitalizing on their services to expand our suite of capabilities.”
PFSweb CEO Mike Willoughby said in a statement that GXO’s industry leadership, global scale and significant capital resources make its platform a strong strategic partner for PFS.
“In joining GXO, we can deliver our proven, branded order fulfillment and support services to an expanded base of premier clients, as well as further enhance GXO’s global fulfillment network,” he said. “The GXO team shares our commitment to top-quality client relationships and execution, and we look forward to our future together.”