Express-1 Expedited Solutions Inc. and Bradley Jacobs, founder of United Waste Systems, announced Tuesday, June 14, that they have entered into an agreement under which Jacobs and minority co-investors will invest an aggregate of up to $150 million in cash in Express-1, including an investment by Jacobs Private Equity of up to $135 million.
Jacobs will become the majority shareholder in Express-1 – a publicly traded nonasset-based third-party logistics transportation services provider – and chairman of its board of directors. In addition, he will lead the company as chief executive officer. Jacobs previously built two multibillion-dollar publicly traded companies: United Rentals Inc., the world’s largest equipment rental company, and United Waste Systems Inc., the fifth-largest solid waste company in the United States at the time of its sale.
“I plan to build a multibillion dollar transportation brokerage business over the next several years,” Jacobs says. “Express-1 is an ideal platform, with prominent positions in expedited services, freight brokerage and freight forwarding. I’m excited about leading the company into its next phase of growth.”
The transaction, which has been approved by the company’s board of directors, is subject to the receipt of shareholder approval and other customary closing conditions. Express-1 is expected to maintain its current headcount and central operating locations in Buchanan, Mich.; Downers Grove, Ill.; South Bend, Ind.; Rochester Hills, Mich.; Tampa, Fla.; and Miami.
“We’re very pleased that Brad has decided to make such a significant commitment to advancing Express-1’s position in the industry,” says Mike Welch, chief executive officer of Express-1 Expedited Solutions. “We view his decision as a strong vote of confidence in the caliber of our employees and our operations.”
