Costco Acquires Innovel Solutions for $1 Billion
ISSAQUAH, WA - When a major company like Costco Wholesale makes a move, the industry takes notice. But when that move is a $1 billion acquisition, we see it as a news-worthy celebration. The wholesaler announced today it has completed the acquisition of Innovel Solutions, a leading provider of third-party end-to-end logistics solutions with nationwide capabilities.
“We have had a great relationship with Innovel and share a philosophy of taking care of our members,” Craig Jelinek, Costco’s Chief Executive Officer, commented in a statement. “We believe the acquisition will allow us to grow our e-commerce sales of ‘big and bulky’ items at a faster rate.”
Innovel was a subsidiary of Transform Holdco, which operates Sears and Kmart stores. Under Costco’s ownership, Innovel will continue to serve Sears and other existing third party customers.
For decades, Innovel has 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 percent of the U.S. and Puerto Rico. Innovel consistently ranks in the top quartile of customer satisfaction scores.
Costco has been a customer of Innovel since 2015. With the recent acquisition, the wholesaler now has access to 11 distribution/fulfillment centers, over 100 final-mile cross-dock centers, and over 15 million square feet of warehouse space to add to its already 786 warehouses around the globe.
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