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BREAKING NEWS: Jacobs leads purchase of Express-1

Bradley S. Jacobs will become the majority shareholder, chairman of the board of directors and chief executive officer of Express-1 Expedited Solutions Inc., the company announced Tuesday.

Jacobs and a group of minority co-investors will invest a total of up to $150 million in cash in Express 1, with up to $135 million coming from Jacobs Private Equity LLC.

Express-1 is a third-party logistics transportation services provider offering expedited transportation solutions, domestic and international freight forwarding and premium truckload brokerage services to retail, commercial, manufacturing and industrial customers.

Jacobs previously built two multi-billion-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 multi-billion dollar transportation brokerage business over the next several years,” Jacobs said. “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.”

“We’re very pleased that Brad has decided to make such a significant commitment to advancing Express-1's position in the industry,” said  Mike Welch, chief executive officer of Express-1. “We view his decision as a strong vote of confidence in the caliber of our employees and our operations.”

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.; Miami, Fla.; and Tampa, Fla.

Express-1 serves retail, commercial, manufacturing and industrial customers in two growing areas of the transportation industry: domestic freight brokerage and international freight forwarding.

The size of the U.S. freight brokerage market (via trucking) is estimated to be approximately $50 billion annually. While there are more than 10,000 licensed freight brokers in the United States, 99 percent of them generate less than $200 million in revenues. The size of the international freight forwarding market (via air and sea) is estimated to be approximately $150 billion annually, with the 10 largest firms accounting for about 40 percent total share.

About Express-1:

Founded in 1989, Express-1 offers its services through three distinct business units: Express-1, Inc. (expedited transportation solutions), the fifth largest U.S. expedited freight service provider, according to The Journal of Commerce; Concert Group Logistics, Inc. (domestic and international freight forwarding); and Bounce Logistics, Inc. (premium truckload brokerage). The company serves more than 4,000 retail, commercial, manufacturing and industrial customers through six U.S. operations centers and 22 agent locations. In 2010, the company completed more than 144,000 transactions for customers and generated revenues of approximately $158 million.

About Bradley S. Jacobs:

Since 1979, Jacobs has founded and led four highly successful companies, including two multi-billion dollar, publicly traded corporations: United Rentals and United Waste Systems, which was sold in 1997 for $2.5 billion. As chairman of United Rentals from 1997 through 2007, Jacobs grew the company to $3.9 billion in revenues, with more than 700 branch locations, 13,000 employees, and a ranking as the 536th-largest public corporation in America by Fortune magazine. He has been instrumental in raising more than $6 billion through dozens of financings in the debt and equity markets since 1992.

In 1989, Jacobs founded United Waste and built it into the fifth largest solid waste management business in North America. In 1987, he founded Hamilton Resources (UK) Ltd., a worldwide oil trading company that served major oil companies and oil-producing countries and generated annual revenues of approximately $1 billion. In 1979, he co-founded Amerex Oil Associates, Inc., creating one of the world's largest oil brokerage firms, with an annual gross contract volume of approximately $4.7 billion.

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