XPO Logistics Inc is looking to expand its business that assembles goods in warehouses before delivery to become a one-stop shop in transportation logistics, its chief executive told Reuters. “Contract logistics is an important part of our future and some of the acquisitions that we’re looking at are in contract logistics,” CEO Bradley Jacobs said in an interview. Greenwich, Connecticut-based XPO entered the contract logistics business with its purchase of New Breed Logistics for $615 million earlier this month. “We call New Breed the Rolls-Royce of contract logistics. It’s very high end. That’s the place we want to be,” Jacobs said Jacobs, 58, has built XPO into a company with over $3.5 billion in market capitalization on a fully diluted basis from $173 million since he took control in 2011, largely through acquisitions. The company said on Thursday it expected to spend the $700 million it raised from a group of investors including Ontario Teachers’ Pension Plan and Singapore’s sovereign fund, GIC, on acquisitions. XPO Logistics - with customers in the United States, Mexico and Canada - is already a large player in last-mile delivery services and intermodal shipping, which involves moving goods using multiple modes of transport. Jacobs said expanding in the U.S. contract logistics business will help the company offer every link of transport services. “Our customers are demanding this service.” XPO so far arranged for goods, for example - a television set - to be transported from a shipper to a warehouse. Another company, such as New Breed, then put together that television and handed it back to XPO to deliver to a retailer. With contract logistics, XPO will now be responsible for assembling the television set in the warehouse too. Although there is a wide range of services under contract logistics, XPO was looking at the high end of the market, Jacobs said. Other companies that offer contract logistics services include the world’s largest courier company, United Parcel Service Inc, and Switzerland-based Kuehne und Nagel International AG. Jacobs said XPO was also looking at deals in truck brokerage, last-mile delivery services and intermodal shipping. XPO has a revenue target of about $9 billion by 2017. The company’s revenue more than doubled to $702.3 million in 2013 and the New Breed acquisition is expected to add more than $660 million in sales annually. (Reuters)