Alaska Express Logistics to buy global logistics company with $3 billion
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Alaskan Express Logistic Services, a global logistics and logistics logistics outsourcing company with more than $3.6 billion in revenues and revenues per employee, has agreed to acquire a global company, Express Log, Inc., with plans to open a logistics and delivery company by year-end, according to a report from Axios.
The acquisition is expected to close in the second half of 2019, according the report.
The news comes less than two weeks after the Anchorage Express announced it was merging with Alaska Express to become a wholly owned subsidiary of Alaska Express.
The Anchorage Express has long been considered one of the most profitable companies in the industry and the Anchorage Times reported in August that the Anchorage Exchange had reported net income of $11.2 million during the first three months of 2019.
Alaska Express has been one of Alaska’s biggest growth areas, with revenue growth topping $10 billion annually.
Express Log had revenues of more than half a billion dollars in 2019, making it the second-largest company in the world, after UPS, according Alaskas Public Enterprise Fund.
Alaska Airlines and Alaska Express were among the companies to report record revenue growth in 2019.
The deal is expected give Alaska Express access to a global network of logistics and freight transportation services, which will allow the company to continue to expand its operations and deliver its products to customers, the report said.
Express has an estimated global market cap of $13.5 billion and operates a fleet of more to more than 500 planes.
The combined company will operate logistics, logistics and warehouse services, according Axios, and will also provide delivery services, transportation and security services.
Alaska will also become Alaska Express’ parent company.
Alaska’s board of directors approved the deal, which the company said would create “the largest global logistics network in the United States.”
Alaskans Businesses Association CEO Chris Pappas said the deal will help Alaskaians access global logistics services while creating jobs in Alaska.
“This deal will bring the Alaska Express business to even more customers, and increase the economy and create jobs,” Pappatas said in a statement.
“We are grateful to the Anchorage, Alaska Express board for its support in securing the opportunity to acquire this valuable business and provide our customers with a new, more efficient and cost-effective logistics network.”
Alaska Express is expected bring on additional employees as the deal closes.
The Alaska Express stock was trading up around $5.95 per share in late morning trading on Wednesday, and the stock is up more than 40% this year.
Alaska also recently launched a digital marketplace, Alaskamapost, which lets people sell their Alaska Express tickets on the platform.
Alaskan Express Logistic Services, a global logistics and logistics logistics outsourcing company with more than $3.6 billion in revenues and…