Dive Brief:
- J.B. Hunt’s acquisition of Zenith Global Logistics brought in $28 million in revenue in Q2, its first full quarter as part of the carrier, according to J.B. Hunt’s July 19 earnings report.
- The transportation company’s Final Mile Services segment grew its revenue by 21% YoY during the quarter, driven in large part by the Zenith acquisition.
- Taking on the furniture logistics company is part of J.B. Hunt’s growth strategy to buy assets that can grow its last mile big and bulky services.
Dive Insight:
Merger and acquisition deals have helped J.B. Hunt expand its reach and capacity in LTL last-mile services. In 2019, it acquired “substantially all” of the assets of package and freight provider Cory 1st Choice Home Delivery for $100 million, as well as RDI Last Mile for $17.5 million, a deal that targeted the Northeast.
In February, J.B. Hunt completed its acquisition of virtually all of of Zenith’s assets for $87 million.
Other businesses have pursued similar acquisition tactics to grow their last mile businesses. Last year, Cardinal Logistics acquired NRX Logistics, doubling its final-mile deliveries to 1.1 million, and Werner acquired big and bulky delivery provider NEHDS Logistics, which had a fleet of over 400 delivery trucks.
Nick Hobbs, J.B. Hunt’s chief operating officer and president of contract services, said that while last mile demand has softened in some end markets, including furniture, the Zenith acquisition has helped buoy the business.
“Our recent acquisition, Zenith Freight Lines, is performing well and is presenting good opportunities for future growth,” Hobbs said “Going forward, we will remain committed to providing an unmatched service in the industry, and we continue to make investments to support that effort. We believe this will support our long-term performance in this ... growing piece of the supply chain.”
