Costco Buys Innovel for $1B|
March 19, 2020
has completed the acquisition of Innovel, a
leading provider of third-party end-to-end
logistics solutions with nationwide
capabilities. Innovel was a subsidiary of
Transform Holdco, LLC, which operates Sears
and Kmart stores. The purchase price of $1
billion was funded from the Company’s
existing cash balances.
Innovel has for decades 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% of the U.S. and Puerto Rico.
Products served through Innovel include
major appliances, furniture, mattresses,
televisions, grills, patio, fitness
equipment and wine cellars. Innovel
consistently ranks in the top quartile of
customer satisfaction scores.
It employs over 1,500 people and operates 11
distribution/fulfillment centers and over
100 final-mile cross-dock centers, with over
15 million square feet of warehouse space.
The company also operates dedicated call
has been a customer of Innovel since 2015.
According to Craig Jelinek, Costco’s CEO:
“We have had a great relationship with
Innovel and share a philosophy of taking
care of our members. We believe the
acquisition will allow us to grow our
Ecommerce sales of “big and bulky” items at
a faster rate.” Under Costco’s ownership,
Innovel will continue to serve Sears and
other existing third party customers.
Advisors to Costco on the transaction
included Moelis & Company (financial) and
Perkins Coie (legal).
Costco currently operates 786 warehouses,
including 547 in the United States and
Puerto Rico, 100 in Canada, 39 in Mexico, 29
in the United Kingdom, 26 in Japan, 16 in
Korea, 13 in Taiwan, 11 in Australia, two in
Spain, and one each in Iceland, France, and
China. Costco also operates e-commerce sites
in the U.S., Canada, the United Kingdom,
Mexico, Korea, Taiwan, Japan, and Australia.