J.B. Hunt buy adds last-mile capability

Gym equipmentdeliverer in deal

J.B. Hunt Transport Services Inc. extended its final-mile operations with the purchase Monday of a gym equipment delivery service.

The acquisition of Mass Movement Inc. is J.B. Hunt's fourth since 2017. Details about the deal were scarce in a news release Monday.

Hunt subsidiary J.B. Hunt Transport Inc. said that it paid for Mass Movement's assets with cash in hand and retained law firm Mitchell, Williams, Selig, Gates & Woodyard, PLLC as legal adviser.

Spokesman Brad Delco provided "no further comment" about the deal when asked about the cost and what assets J.B. Hunt purchased.

Despite being a relatively small part of the company, final mile, which covers the last step of the process in delivery of a package to a home or business, is expected to grow rapidly as e-commerce sales continue to climb.

"That's getting significantly boosted by the pandemic," said Justin Long, a transportation analyst with Stephens Inc.

Data shows U.S. retail e-commerce sales grew more than 36% to $209.5 billion in the quarter that ended Sept. 30, compared with last year. According to the U.S. Census Bureau, e-commerce sales made up 14.3% of total retail sales, up from 10.6% a year ago.

Regardless of the coronavirus pandemic's effects on shopping behaviors, Long said there is a sustainable e-commerce growth trend that the industry was anticipating.

"J.B. Hunt has really started to build some nice scale" to its final mile business, he said.

There are 117 locations and more than 3.4 million square feet of warehouse and facility space that J.B. Hunt acquired through acquisitions.

Last year the Lowell-based company acquired the assets of RDI Last Mile Co. and Cory 1st Choice Home Delivery. Before that it purchased Special Logistics Dedicated in 2017.

Mass Movement of Massachusetts further expands J.B. Hunt's delivery portfolio of big and bulky products, President and Chief Executive John Roberts said in a written statement.

"The acquisition complements our current service and will enhance our ability to meet the growing demand of customers in the commercial health and fitness industry," he said.

Mass Movement was founded in 1996 by Dom Simonetti and Jim Sullivan. It has delivered more than 2 million pieces of equipment to more than 3,500 fitness centers in that time.

The founders will join J.B. Hunt and take on leadership roles to help grow its fitness equipment delivery business, the Lowell-based carrier said.

Mass Movement generated $29 million in revenue last year as J.B. Hunt's dedicated business, which encompasses final mile, reported annual revenue of $2.7 billion.

Long said the acquisition was "small, but still moves the needle a little in that segment."

J.B. Hunt shares fell 1 cent to close Monday at $135.28.

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