American freight tools company seeks to cash in on the resurgence of freight, says CEO
The American freight tool company Harbor Freight Products Inc. is looking to capitalize on the recent rebound in freight, with a new app and a revamped website to help customers pay their freight bills.
The company said on Tuesday it was acquiring two freight payment firms, American Pay Solutions Inc. and CargoPay, and was in the process of acquiring an additional payment service provider, FreightPay, in a deal valued at $3.2 billion.
The new app, called Harbor Freights and Pay, aims to provide users with an online shopping experience that lets them pay their shipping, handling and other freight charges online, according to a company blog.
The app will be available in the U.S. and in Canada.
Housing, transportation and other goods are a big part of the company’s business model, and the company has more than 500 stores in the United States, Canada, Puerto Rico and the U,C.A., the United Kingdom, and Ireland.
The deal will allow the company to expand into new markets such as Mexico, Australia and Europe, according the blog.
The move comes amid a resurgence in demand for freight tools, which surged 30% to $13.4 billion in fiscal 2017 from a year earlier, according a report from research firm Gartner.
The industry is seeing a spike in demand from both consumers and businesses.
In 2017, the U to the U freight business reached $4.6 billion, up 17% from a decade ago.
Freight payment tools are a growing part of freight processing in the country, where the industry accounted for nearly half of the $6.5 billion in freight revenue in fiscal 2018.
The U.C.C.’s new CEO, Michael Gartenberg, told the company website that he is “very proud of the strides we’ve made since the launch of Harbor Freighters.
It is a win-win for the company and its shareholders.”
Gartenberg said the company will use the acquisition to expand its business, add a new product and “make it easier to pay our customers.”