SAN FRANCISCO, March 17 (Xinhua) -- U.S. wholesale giant Costco announced on Tuesday it has completed the acquisition of Innovel Solutions, a nationwide provider of third-party end-to-end logistics solutions, for a price of 1 billion U.S. dollars.
Costco has been a customer of Innovel since 2015. Craig Jelinek, Costco's CEO said. "We have had a great relationship with Innovel and ... we believe the acquisition will allow us to grow our e-commerce sales of 'big and bulky' items at a faster rate."
According to the announcement, with 11 distribution/fulfillment centers and over 100 final-mile cross-dock centers, Innovel's network offers coverage to nearly 90 percent of the United States. It has for decades provided Sears and more recently third parties with "final mile" delivery.
Under Costco's ownership, Innovel will continue to serve its existing customers, read the announcement.
Costco, the leading membership warehouse club, currently operates 786 warehouses worldwide, including more than 500 in the United States.
