Costco Acquires Innovel Solutions
From HomeWorld Business: By Matthew Kramer, March 17, 2020
Costco has completed the acquisition of Innovel Solutions, a leading provider of third-party end-to-end logistics solutions with nationwide capabilities.
Innovel was a subsidiary of Transform Holdco, 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.
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 centers.
Costco 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.