Echo Global Logistics Inc. on Tuesday announced it has reached an agreement to purchase what it described as one of the largest privately owned truckload brokers and non-asset based freight transportation providers in the U.S. The company also reported improved first quarter earnings.
The Chicago-based company said it is acquiring Command Transportation LLC for approximately $420 million. Last year the Skokie, Ill., company reported revenue of $561 million while in 2014, Echo and Command had combined revenue of $1,734 million.
The combined company will have more than 1,680 sales representatives in 34 offices across the U.S. and an expansive nationwide carrier network of truckload carriers, according to Echo.
"Since the founding of Echo in 2005, we have achieved remarkable growth and become a best-in-class transportation solutions provider by focusing on superior technology and exceptional service across all modes of transportation,” said Doug Waggoner, CEO of Echo. "Together with Command, we will significantly enhance our national scale and density in the highly fragmented truckload market.”
Paul Loeb, CEO of Command, will be joining the Echo board of directors in connection with the closing of the transaction and the Echo board will be expanded to seven directors.
Following the transaction, Command will be a wholly owned subsidiary of Echo, and the combined company will be called Echo and remain headquartered in Chicago.
The transaction is expected to close in the second quarter of 2015, subject to regulatory approvals.
Echo also announced in the first quarter of 2014 total revenue increased by 14% to $283 million from a year earlier, while net income increased 36.9% to $3.3 million. Earnings per diluted share increased to 14 cents from 10 cents.
"Echo continues to deliver strong results, and this quarter marked another significant increase in volume," said Waggoner. "A softer truckload market and lower fuel costs offset our top line growth, but our strategy and execution continues to drive market share gains.”