Bradley S. Jacobs

From Infogalactic: the planetary knowledge core
Jump to: navigation, search
Bradley Jacobs
Born (1956-08-03) August 3, 1956 (age 67)
Providence, Rhode Island, U.S.
Residence Greenwich, Connecticut, U.S.
Alma mater
Occupation CEO
Known for
  • Chairman and CEO of XPO Logistics
  • Founder of Hamilton Resources (UK)
  • Founder of United Waste Systems
  • Co-founder of Amerex Oil Associates
  • Co-founder of United Rentals

Bradley “Brad” Jacobs (born August 3, 1956) is an American businessman. He is the chairman and chief executive officer of XPO Logistics and managing director of Jacobs Private Equity LLC.[1] Jacobs is best known for having led rapid industry consolidations in waste management and equipment rental in North America, initiated in 1989 and 1997, respectively, and in global transportation and logistics since 2011.

Early life and education

Jacobs was born in Providence, Rhode Island. His father was a jewelry importer.[2] He attended Northfield Mount Hermon School, Bennington College and Brown University in the 1970s, but dropped out to broker oil contracts.[2]

Career

Amerex Oil Associates, Inc.

In 1979, at the age of 23, Jacobs co-founded Amerex Oil Associates Inc., a New Jersey-based oil brokerage firm,[3][4] and served as its CEO until the firm was sold in 1983.[5]

Hamilton Resources (UK) Ltd.

In 1984, Jacobs went to England and founded Hamilton Resources (UK) Ltd., an oil trading company,[2][6] using the bulk of his savings and a $1 billion line of credit from Banque Paribas.[4] As chairman and chief operating officer, he grew the company to approximately $1 billion in annual revenue,[5] before quitting the business in 1988 and moving back to the United States.[2][6]

United Waste Systems Inc.

In July 1989, Jacobs founded United Waste Systems in Greenwich, Connecticut with a strategy to consolidate small garbage collectors with overlapping routes in rural areas.[3][6] Jacobs served as chairman and CEO,[7] and in 1992 he took the company public on the NASDAQ Stock Market,[6] raising $41 million.[6] In August 1997, after having made 200 acquisitions,[2] United Waste Systems was sold to USA Waste Services Inc. for $2.5 billion.[4][8][9] At the time of sale, United Waste Systems had become the fifth-largest solid waste management company in North America, delivering a 55% compound annual rate of return from its initial public offering to its sale to USA Waste Services.[8]

United Rentals Inc.

In September 1997, Jacobs gathered six members of the former United Waste Systems management team to brainstorm potential ventures.[10][11][12] The group pooled $46.5 million of personal wealth, and raised another $8 million in private equity, to form United Rentals[3][8] with Jacobs as chairman and CEO. As with United Waste, Jacobs planned to grow United Rentals through a rollup strategy, consolidating small equipment rental dealers across North America.[7][10] The company began acquiring companies in October 1997 with the purchase of six small leasing outfits.[3][13]

United Rentals went public in December 1997,[12][13][14] and began trading on the New York Stock Exchange.[3] Approximately $100 million was raised in an IPO, followed by $207 million in a secondary offering.[15]

In June 1998, United Rentals acquired U.S. Rentals Inc. for a sum variously reported at $1.2 billion[16] and $1.31 billion,[17] creating the largest equipment rental company in North America.[17] By October 1999, Jacobs’ personal wealth had reportedly increased to $590 million, putting him just short of making the Forbes 400 list that year.[2]

Jacobs utilized information technology to integrate the company’s geographically disparate rental outlets[15] and reduce the unnecessary discounting of rental rates.[10][11] Jacobs also introduced a business-to-business website where companies could research, rent and buy equipment.[3]

In September 2003, Jacobs announced that he planned to step down as CEO of United Rentals at the end of the year,[7][10][11][18] that he would continue on as executive chairman, and that he would remain the company’s largest non-institutional private shareholder.[7][10][11]

In July 2007, Jacobs signed a definitive merger agreement for United Rentals to be acquired by affiliates of Cerberus Capital Management LP for $6.6 billion, including the assumption of $2.6 billion in debt obligations.[19] The merger fell through four months later, in November 2007, when Cerberus backed out of the deal due to the weakened U.S. credit market.[20][21] United Rentals sued in an attempt to force Cerberus to complete the transaction, but in December the Delaware Court of Chancery ruled that the merger agreement allowed Cerberus to walk away as long as it paid a $100 million breakup fee, which it did.[20][21]

By August 2007, United Rentals had become the 536th largest public corporation in America, as ranked by Fortune magazine.[22] Jacobs announced that month that he was stepping down as the company's chairman and director.[23]

At this point in his career, Jacobs had raised $6 billion in capital and engineered approximately 500 acquisitions,[18] including more than 250 rental companies for United Rentals.[12][24]

XPO Logistics, Inc

On June 14, 2011, Jacobs announced his intention to lead an investment of up to $150 million in Express-1 Expedited Solutions (trading at the time as AMEX: XPO), a third-party logistics and transportation service provider.[4]

The investment was completed on September 2, 2011, with Jacobs assuming the roles of chairman and CEO,[25][26][27] and gaining ownership of approximately 71 percent of the company. He announced plans to move the headquarters from Michigan to Greenwich, Connecticut and to change the company's name to XPO Logistics, retaining the symbol XPO on the New York Stock Exchange.[28] On October 12, 2011, Jacobs rang the bell to open the Exchange.[29]

In interviews, Jacobs has stated that he entered the truck brokerage industry because he sensed it was ripe for consolidation, due to extreme fragmentation. At the time, only 15 percent of trucking outsourced to third-party brokers.[26][30] The management team he assembled focused on integrating both greenfield and acquired locations, and developing a culture of customer service and shared technology.[26][30] In doing so, XPO began competing on a national scale with C. H. Robinson Worldwide, Inc. of Eden Prairie, Minnesota and Coyote Logistics of Chicago, Illinois.[31]

Acquisitions and investments

<templatestyles src="Module:Hatnote/styles.css"></templatestyles>

Further information: XPO Logistics

During his tenure as CEO, Jacobs has overseen a number of acquisitions and investments by and for XPO.

  • On July 15, 2013, the company announced its agreement to buy 3PD, Inc., the largest provider of last-mile logistics for heavy goods in North America, for about $365 million in cash and stock. XPO completed the purchase on August 16, 2013.[32][33]
  • On March 31, 2014, XPO acquired Pacer International, making it the third-largest provider of intermodal services in North America;[34] a facilitator for about 10 percent of all domestic intermodal freight movements; and the largest provider of intermodal services between the U.S. and Mexico.[35]
  • On September 2, 2014, it acquired New Breed Logistics, which provided supply chain technology to large companies.[36][37]
  • On April 28, 2015, XPO announced a $3.56 billion (€3.24 billion) deal to acquire Norbert Dentressangle, one of Europe's largest third-party logistics companies.[41][42]
  • On June 1, 2015, XPO announced definitive agreements with a group of global institutional investors to raise a total of $1.26 billion of equity. The group included the original 2014 investors – Ontario Teachers' Pension Plan, GIC, and PSP Investments – each of which increased its holdings in XPO and were joined by 12 institutional investors, including sovereign and university endowment funds.[43] This placement increased XPO Logistics’ total capital raised to more than $7.5 billion since September 2011.[44]
  • On September 9, 2015, XPO announced a $3 billion deal to acquire Con-way, the second-largest LTL operator nationwide.[45] It completed the acquisition on October 30, 2015, gaining critical mass as a global provider with $15 billion of revenue, $1.1 billion of EBITDA, and more than 84,000 employees serving over 50,000 customers through 1,469 locations in 32 countries.[46]

Personal life

Jacobs is married with four children.[2]

Awards and recognition

In March 2009, Jacobs was inducted into the American Rental Association’s Hall of Fame.[12][24]

On November 25, 2015, Jacobs was named American Shipper’s Person of the Year.[47]

On December 2, 2015, Jacobs was listed among the Best CEOs of the 2016 All-America Executive Team.[48]

References

  1. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ 4.0 4.1 4.2 4.3 Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ 5.0 5.1 Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ 6.0 6.1 6.2 6.3 6.4 http://www.forbesmagazine.com/customreprints/article/geekygarbageman.pdf
  7. ↑ 7.0 7.1 7.2 7.3 Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ 8.0 8.1 8.2 Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ 10.0 10.1 10.2 10.3 10.4 Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ 11.0 11.1 11.2 11.3 Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ 12.0 12.1 12.2 12.3 Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ 13.0 13.1 Wall Street Journal, June 17, 1998, “United Rentals Business Bores All but Holders”
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ 15.0 15.1 Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ 17.0 17.1 Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ 18.0 18.1 Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ 20.0 20.1 Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ 21.0 21.1 Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ 24.0 24.1 Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  26. ↑ 26.0 26.1 26.2 Lua error in package.lua at line 80: module 'strict' not found.
  27. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  28. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  30. ↑ 30.0 30.1 Lua error in package.lua at line 80: module 'strict' not found.
  31. ↑ http://coyote.com/
  32. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  33. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  36. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  37. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  38. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  39. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  40. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  41. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  42. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  43. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  44. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  45. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  46. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  47. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  48. ↑ Lua error in package.lua at line 80: module 'strict' not found.
Retrieved from "https://infogalactic.com/w/index.php?title=Bradley_S._Jacobs&oldid=720331304"