COSTCO WHOLESALE CORPORATION - ACQUISITION TO FURTHER LAST MILE CAPACITY
March 17 2020 - 9:01AM
Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq:
COST) today announced that it has completed the acquisition of
Innovel Solutions (“Innovel”), a leading provider of third-party
end-to-end logistics solutions with nationwide capabilities.
Innovel was a subsidiary of Transform Holdco, LLC, which operates
Sears and Kmart stores. The purchase price of $1 billion was funded
from the Company’s existing cash balances.
Innovel has for decades provided Sears and, more
recently, third parties with “final mile” delivery, complete
installation and white glove capabilities for “big and bulky”
products across the United States and Puerto Rico. Innovel’s
network offers coverage to nearly 90% of the U.S. and Puerto Rico.
Products served through Innovel include major appliances,
furniture, mattresses, televisions, grills, patio, fitness
equipment and wine cellars. Innovel consistently ranks in the top
quartile of customer satisfaction scores.
It employs over 1,500 people and operates 11
distribution/fulfillment centers and over 100 final-mile cross-dock
centers, with over 15 million square feet of warehouse space. The
company also operates dedicated call centers.
Costco has been a customer of Innovel since
2015. According to Craig Jelinek, Costco’s CEO: “We have had a
great relationship with Innovel and share a philosophy of taking
care of our members. We believe the acquisition will allow us to
grow our Ecommerce sales of “big and bulky” items at a faster
rate.” Under Costco’s ownership, Innovel will continue to serve
Sears and other existing third party customers.
Advisors to Costco on the transaction included Moelis &
Company (financial) and Perkins Coie (legal).
Costco currently operates 786 warehouses,
including 547 in the United States and Puerto Rico, 100 in Canada,
39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in Korea,
13 in Taiwan, 11 in Australia, two in Spain, and one each in
Iceland, France, and China. Costco also operates e-commerce sites
in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan,
Japan, and Australia.
Certain statements contained in this document
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. For these
purposes, forward-looking statements are statements that address
activities, events, conditions or developments that the Company
expects or anticipates may occur in the future. In some cases
forward-looking statements can be identified because they contain
words such as “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “seek,” “should,” “target,”
“will,” “would,” or similar expressions and the negatives of those
terms. Such forward-looking statements involve risks and
uncertainties that may cause actual events, results or performance
to differ materially from those indicated by such statements. These
risks and uncertainties include, but are not limited to, domestic
and international economic conditions, including exchange rates,
the effects of competition and regulation, uncertainties in the
financial markets, consumer and small business spending patterns
and debt levels, breaches of security or privacy of member or
business information, conditions affecting the acquisition,
development, ownership or use of real estate, capital spending,
actions of vendors, rising costs associated with employees
(generally including health care costs), energy and certain
commodities, geopolitical conditions (including tariffs), the
ability to maintain effective internal control over financial
reporting, global disease threats, and other risks identified from
time to time in the Company’s public statements and reports filed
with the Securities and Exchange Commission. Forward-looking
statements speak only as of the date they are made, and the Company
does not undertake to update these statements, except as required
by law.
CONTACTS: Costco
Wholesale Corporation Richard Galanti, 425/313-8203 Bob
Nelson, 425/313-8255 David Sherwood, 425/313-8239 Josh Dahmen,
425/313-8254
Costco Wholesale (NASDAQ:COST)
Historical Stock Chart
From Mar 2024 to Apr 2024
Costco Wholesale (NASDAQ:COST)
Historical Stock Chart
From Apr 2023 to Apr 2024