Costco buys logistics firm Innovel for US$1 billion

In a bid to ramp up last-mile delivery of "big and bulky" items, Costco Wholesale Corporation has acquired Innovel Solutions for US$1 billion.

Innovel provides delivery and installation on such items as appliances, wine cellars and fitness equipment across the United States and Puerto Rico. The membership-only warehouse has been a client of Innovel since 2015, according to a press release published to Costco's website on Tuesday.

“We have had a great relationship with Innovel and share a philosophy of taking care of our members," said Costco CEO Craig Jelinek. "We believe the acquisition will allow us to grow our e-commerce sales of 'big and bulky' items at a faster rate."

Innovel was previously owned by Transform Holdco, which operates retail banners Sears and Kmart. Under Costco’s ownership, Innovel will continue to serve Sears and other existing third party customers.