Echo Global Logistics recently announced it has made a definitive agreement that enables it to purchase Command Transportation LLC, one of the nation’s largest privately held truckload brokers and non-asset based transportation suppliers.
“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,” Echo CEO Doug Waggoner said. “Through this highly complementary combination, we are taking the next step in our evolution to create a stronger company that we believe is even better positioned for long-term success. We believe the combined company's expanded platform will create immediate and substantial value for stockholders, as well as for clients, carriers and employees."
Echo will spend approximately $420 million to purchase all of Command’s outstanding membership units, an amount that is still subject to post-closing adjustments. Echo will pay $25 million of that sum in the company’s common and restricted stock.
"Together with Command, we will significantly enhance our national scale and density in the highly fragmented TL market,” Waggoner said. “We will also leverage the unique technology of both companies to continue offering best-in-class services and comprehensive solutions that make our companies the provider of choice for our respective clients. Importantly, as we merge our cultures together, we will be supported by the industry's most talented transportation professionals, and the combination will provide greater career development and advancement opportunities for employees. This transaction is about growth for our company, our clients and our people. We look forward to working closely with Paul Loeb, Chief Executive Officer of Command, who will be joining the Echo Board of Directors in connection with the closing of the transaction, and to welcoming the entire Command team to Echo as we continue our mission of taking the 'complicated' out of transportation management."
In 2014, Command’s revenue stood at $561 million, and it was No. 8 on Transport Topics' 2015 list of Top 25 Brokerages. Command is based in Skokie, Illinois, with operations and offices in Houston, Kansas City and St. Louis.
"This is an exciting step forward for Command's clients and employees. This combination is a logical and compelling way to provide our clients with an expanded carrier network, multi-modal solutions, and a robust platform to provide managed transportation services,” Loeb said. “Importantly, we are joining a strong organization that shares our commitment to excellence, innovation and best-in-class client service. I look forward to working together with Doug and the Echo team to achieve a seamless combination while driving the continued growth of our combined businesses.”