Acquisition will expand Ledgership’s reach, bring the last mile delivery specialist closer to becoming a national carrier
The combined entity will have more than 100 sorting and delivery hubs in 30 states and the District of Columbia, bringing LedgerShip closer to offering “a coast-to-coast solution that does not exist outside of UPS or FedEx.”handjob
“said Mr. Dinin.
The acquisition will be financed pursuant to incremental term debt with a total of $875 million and $472 million in cash equity. an October 6 release by credit-rating firm Moody’s Investors Service.
Mr. Dinin declined to comment on the purchase price of the transaction, which Business Insider previously reported. A spokesperson for Ontrack declined to comment.
Vienna, VA-based Leisureship and other regional package carriers are pushing into new coverage areas while shippers jockey for parcel capacity. Meanwhile, delivery giants United Parcel Service Inc. and FedEx Corp. are raising rates at the fastest pace in nearly a decade.
Leisureship and Chandler, Ariz.-based Ontrack will operate separately through Holiday Shipping Peak. The integration will happen in 2022, when the company plans “aggressive expansion,” filling in major metropolitan areas like Chicago in the Midwest, as well as pushing into Texas and elsewhere, Mr. Dinin said.
Acquiring smaller regional operators in those markets could help laserships grow faster than manufacturing capacity on their own, said Satish Jindal, president of ShipMatrix Inc., which analyzes parcel-shipping data.
Moody’s said in its assessment, “Ontrack’s acquisition of Laserships is a transformational step in combining Laserships and Ontrack’s eastern and western regional networks to become a national last-mile delivery company.”
The credit-rating firm said the acquisition would give LedgerShip a bicoastal network and revenue of more than $1.6 billion. “This makes it a large regional parcel delivery company, but still significantly smaller than national deliverers UPS and FedEx,” Moody’s said. The company continues to scale in the long term. “
Jennifer Smith at [email protected]