This Growth Stock Just Made Another Acquisition. Is It a Buy?

GXO Logistics (NYSE: GXO) was created in 2021 in a spinoff from XPO with a simple value proposition for investors. The company would be the largest pure-play contract logistics company and would use its size and scale to grow in a fragmented industry through acquisitions, new technology, and organic growth.

Thus far, the company has kept that promise, delivering solid organic growth and making its first acquisition last year, taking over Clipper Logistics, a U.K.-based company known for its prowess in reverse logistics (processing returns).

Now, GXO has made another promising deal. It recently announced it was buying for $181 million, or an enterprise value of $142 million, which includes the company's cash balance of $39 million. The deal is expected to close in the fourth quarter.

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Source Fool.com