Package-delivery company Velocity Express announced that it will acquire competitor CD&L for $66 million, creating a logistics company with $450 million in annual sales. Velocity, based in Westport, Conn., said it sold 4 million shares of preferred stock for $40 million and took on another $70.7 million in secured debt in connection with the signing of the acquisition agreement, which is expected to close in mid-August.
The deal stipulates that CD&L board member Thomas Durkin be appointed to the combined company’s board after the merger is approved, and it also foresees many of the top executives at South Hackensack, N.J.-based CD&L working at the new company, including President and Chief Operating Officer Bill Brannan, Chief Financial Officer Russ Reardon, group president Michael Brooks and general counsel Mark Carlesimo.
