New Breed will be sold, no layoffs planned
A Connecticut-based logistics company will purchase New Breed Logistics, the city’s 13th-largest employer which has its main operation in north High Point.
No layoffs of New Breed employees will result from the deal, said a spokeswoman for XPO Logistics Inc. said.
“New Breed is expected to grow and hire more employees as part of this transaction,” the spokeswoman told The High Point Enterprise Wednesday afternoon.
XPO announced this week that it has entered into an agreement to acquire New Breed Holding Co. for $615 million.
New Breed, which also involved in logistics, had revenue of approximately $597 million for the fiscal year ended June 30. New Breed has 670 employees in the city, according to the most recent report of the High Point Economic Development Corp.
Once the transaction is complete, New Breed’s chief executive officer, Louis DeJoy, will lead XPO’s contract logistics business as its chief executive from the current operations center in High Point, XPO announced.
New Breed specializes in services for transportation management, freight bill auditing and payment, manufacturing support and supply chain services. New Breed processes more than 275,000 orders per day through 71 facilities, and employs approximately 6,800 people companywide.
After absorbing New Breed, XPO expects to have approximately 10,000 employees and more than 200 locations.
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. When the transaction is complete, we’ll have an IT workforce of more than twice its current size, and about 10,000 employees at over 200 locations.”
XPO has obtained commitments from Credit Suisse AG, Morgan Stanley Senior Funding Inc., Citigroup Inc. and Deutsche Bank AG for a total of up to $645 million in senior secured term loan facilities to fund the New Breed deal and general corporate purposes, including potential future acquisitions.