XPO Logistics has closed its $335 million acquisition of Pacer, completing a deal that was announced in January.
Daniel Avramovich, Pacer’s former chief executive officer, has taken over as XPO’s senior vice president of strategic development.
The firm partly financed the purchase with money from its $414 million public offering.
"Our acquisition of Pacer makes us a major player in the fast-growing intermodal sector and the largest intermodal provider in cross-border Mexico,” XPO Logistics Chairman and Chief Executive Officer Brad Jacobs said in a statement. “We now have a strong platform that fits our customer-centric culture and can support considerably more scale as we continue to grow our multi-modal services to shippers. Over the past few months, every functional area of XPO has been involved in creating a detailed integration plan that we start executing today, along with immediate cross-selling to our combined customer base. We welcome our new employees, customers, rail partners and carriers to XPO."
If Pacer shareholders had not approved the deal, XPO would have had to pay Pacer a $12.4 million breakup fee.
The Pacer deal stands as the largest transaction in XPO’s two-year history, and Jacobs said he remains committed to achieving a $5 billion run rate by 2017.