(Image source: The Wall Street Journal)
LaserShip Inc is closing on a $1.3 billion deal to buy Western U.S rival OnTrac Logistics Inc, extending its last mile delivery within the region with the emergence of e-commerce demand. With this acquisition, the company’s regional last-mile delivery will reach across states. The joint network will make a 2-day shipping option available to 74% of the U.S population.
Acquiring smaller regional operators boosts the LaserShip’s growth in a faster and cheaper way than building capacity on its own. Once the deal officially closes at the end of October, the company will own over 100 sorting and delivery hubs in 30 states and the District of Columbia, close to competing with coast-to-coast solutions of big logistics companies like FedEx and UPS.
“LaserShip’s acquisition of OnTrac is a transformative step to becoming a national last-mile delivery company by combining the eastern and western regional networks of LaserShip and OnTrac, respectively,” according to Moody’s Investors Services.
For this holiday season, LaserShip and OnTrac will still operate separately. The integration will officially start in 2022, creating a bi-coastal network.