Mexico City-based carrier Grupo Traxión SAB de CV has acquired U.S. company BBA Logistics LLC.
The Mexican carrier expects to capitalize on the move to nearshoring, the practice of a company moving its business activities or manufacturing to a nearby country or close to the destination/end consumer market.
BBL Logistics is an asset-light door-to-door and cross-border cargo brokerage company based in Las Vegas.
BBA specializes in cross-border logistics, offering cross-dock, transloading and storage services. It has facilities in Las Vegas; Nogales, Ariz.; Mexico City; and Los Mochis, Mexico.
The acquisition price was $10 million U.S., with 40% paid at closing and the remainder to be paid within the following two years, subject to certain metrics and results, according to a company announcement.
BBA Logistics is expected to generate revenue of about $22 million U.S. in 2023, with a 10% earnings before interest, taxes and depreciation margin. The company has no debt.
With the acquisition, Traxión said it expects to realize commercial synergies with Traxporta, its digital domestic cargo brokerage app.
“With this acquisition, Traxión moves forward with its expansion plans into the United States, particularly in domestic and cross-border cargo services, following its inorganic growth path through asset-light companies within its logistics and technology division. With the integration of BBA Logistics, Traxión strengthens its strategic position to continue to capitalize on opportunities brought by the nearshoring phenomenon,” Aby Lijtszain, executive president and founder of Traxión, said in a company statement.
Grupo Traxion was incorporated in 2011. It changed its name in 2017 from Fondo de Transporte México SAPI de CV, according to Yahoo Finance. That same year it had its initial public stock offering. The company focuses on trucking and school transportation. The company offers dry and refrigerated boxes, hoppers, platforms, mid-range units, intermodal and multimodal, imports and exports, domestic distribution, cross-borders, ports, cross docks, and door-to-door freight services.
Last September, the company acquired V-Modal, a railway logistics firm for around $6 million. The acquisition expanded Traxion’s rail capabilities into the United States and Canada, the company said.
BBA Logistics was incorporated in 2018. LL
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