Geodis Acquiring Last Mile Provider Need It Now Delivers

Geodis Need it Now warehouse feature

Paris-based major 3PL Geodis is acquiring Need It Now Delivers, adding last-mile delivery principally on the east coast, a capability that was lacking for the contract logistics, freight and fulfillment provider as it looks to ramp up its penetration into ecommerce and omnichannel companies.

The deal is expected to close by the end of the year, for an undisclosed sum. Need It Now Delivers, based in New Jersey, is owned by its management along with private equity fund Palm Beach Capital, and is projected to reach about $750 million in revenue this year.

“Our U.S. supply chain business has consistently grown over the last 10 years,” said Mike Honious, president and CEO of Geodis in Americas in a release. “With the services, capabilities, and the leadership team of Need It Now Delivers, we will expand our offerings and support the growth strategies of our customers.”

Need It Now Delivers employs 2,000 and has 65 company-owned facilities, plus another 300 distribution points nationwide. Its footprint is concentrated in the east, with some hubs in the Midwest, California, Utah and Kansas. Need It Now offers distribution, last-mile delivery and multichannel contract logistics for clients in retail, healthcare, medical supplies, automotive and consumer goods.

The last-mile space has been exploding as the pandemic fueled ecommerce growth, which has been tailing off of late. Jones Lang LaSalle estimated half of all industrial leasing in the third quarter of 2021 was for less than 100,000 square feet, usually an indicator of last-mile activity, according to the Wall Street Journal. In its Q2 2022 report, the commercial real estate firm said Class A commercial facilities “remains highly sought after and command a premium as last mile facilities become unavailable due to preleasing and lack of available space.”

Jeff McDermott, EVP of transportation for Geodis in Americas, said Need It Now’s strengths complement Geodis’ extensive assets in contract logistics and warehousing. He added Geodis had been using Need It Now as a delivery partner for several years and was satisfied with the results.

“We’re always look at additional acquisition opportunities to expand last-mile and distribution throughout the U.S.,” McDermott said. “They’ve been doing a good job of filling that east coast capacity for us.”

McDermott said Need It Now will operate for the time being under its own brand as a standalone company, with integration plans down the road.

The acquisition will give Geodis 15,000 employees in the U.S., and 17,000 in the Americas. The combined organization would have realized $3.7 billion in 2021 revenue, according to Geodis.