ABF Logistics acquires Logistics & Distribution Services

ArcBest’s 3PL subsidiary ABF Logistics last week acquired Sparks, Nevada-based Logistics & Distribution Services (LDS) for $25 million.

Established in 2001, LDS has roughly 30 employees mainly in Nevada and has another location in Allentown, Pennsylvania. It has $60 million in annual revenue. LDS provides dedicated truckload capacity throughout the United States through an asset-light operating model.  

"This acquisition complements our business nicely by adding to our existing services, specifically in deploying dedicated capacity, which will increase the breadth of our available solutions for customers," said ABF Logistics President Jim Ingram in a statement. "We like the customer-centric model LDS has built. This purchase is another important step in our strategy to seamlessly provide customers with the full logistics services they require and grow the percentage of total revenue that comes from the asset-light businesses operated by ArcBest."

This acquisition was driven by ArcBest and ABF Logistics having talked for some time about plans to grow the asset-light businesses both organically and through acquisition, an ABF Logistics spokesperson told LM.

“This is in keeping with those plans,” she said. “LDS is a good fit in terms of business model, geography and culture. Customers have more access to additional logistics services as the company continues to expand its reach and scope.”

ABF Logistics already has nationwide shipping coverage, with ABF Freight facilities in Nevada, but the spokesperson explained that this acquisition helps expand additional service offerings that customers are seeking beyond LTL including truckload brokerage and dedicated capacity.

LDS Founder, CEO, and President Ross Kline will head up the new ABF Logistics branches in Sparks and Allentown. Kline has spent nearly 35 years in transportation and 25 years running a dedicated brokerage model.

This acquisition is the latest step in ArcBest’s objective to continue to organically grow its asset-light business for ABF Logistics, which was established in 2013. Previous acquisitions include Bear Transportation Services in December 2015 and Smart Lines Transportation Group in January 2015.