Big Moves In Logistics: GXO Acquires PFSweb For $181M To Expand Its Luxury & Cosmetics Offerings

Logistics company GXO Logistics Inc GXO has entered into a definitive agreement to acquire eCommerce order fulfillment provider PFSweb Inc PFSW for $7.50 per share in cash, representing an equity value of approximately $181 million.

The deal price represents a premium of 50% to PFSW's last closing price of $5.01.

The enterprise value is $142 million and includes PFSweb's cash balance of $39 million on June 30, 2023.

Texas-based PFSweb serves luxury brands worldwide through 11 distribution centers across North America, Belgium, and the U.K. 

The deal will help GXO to further expand its U.S. offering in cosmetics and luxury, leveraging PFSweb's client relationships.

GXO will capitalize on PFSweb's technology and services with expanded offerings to GXO's current North American and European customers.

Also Read: GXO Logistics Partners With European Fashion Platform Zalando For Fulfillment Center Operation

PFSweb provides three value added services that will expand GXO's suite of capabilities, payments and fraud protection, customer care and distributed order orchestration systems.

"Over the past 25 years, the PFS team has established a successful track record in both direct to consumer and B2B channels, and they've built a rock-solid reputation with many of the world's most iconic brands by deploying an order fulfillment platform that rivals the largest enterprise 3PL providers in the industry," said GXO CEO Malcolm Wilson.

The transaction is expected to close in the fourth quarter of 2023.

GXO held $305 million in cash and equivalents as of June 30, 2023.

Price Action: PFSW shares are trading higher by 48.20% at $7.43 on the last check Thursday.