Following a mid-September announcement in which it stated it was acquiring Irving, Texas-based PFSweb, a provider of e-commerce order fulfillment services, Greenwich, Conn.-based global contract logistics services provider GXO Logistics said late yesterday that the deal is now official.
Under the terms of the agreement outlined by GXO, 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.
“Today’s acquisition marks an important step on GXO’s path to expand its exposure to new high-growth verticals in North America and adds valuable capabilities that will directly benefit our customers,” said GXO CEO Malcolm Wilson in a statement. “We are excited to officially welcome the talented PFSweb team to GXO. The successful acquisition is another example of our commitment to creating shareholder value through disciplined capital allocation when ideal opportunities arise.”
GXO officials said that with PFSweb in the fold it will expand GXO’s offering in high-growth verticals, including cosmetics and luxury goods, across North America and Europe by leveraging PFSweb’s relationships with more than 100 brands. GXO added it will also capitalize on PFSweb’s key service capabilities ranging from high touch customer care and secure payments and fraud protection to distributed order orchestration systems on which many high-end brands rely.
And the company added that PFSweb will operate as a division within GXO’s Americas and Asia Pacific region, under the direction of GXO President Americas and Asia Pacific Eduardo Pelleissone.
When the deal was first announced in September, 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 GXO’s Pelleissone in a September 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.”