Stord buys AMS Fulfillment, adding 1 million square feet of warehouses

Stord, a commerce technology company based in Atlanta, has bought AMS Fulfillment, a company that stores, packs and ships products for online brands. The deal adds more than 1 million square feet of warehouse space. Stord announced it Wednesday, Oct. 21, and called it the largest deal in its history.

What changed

AMS is what the industry calls a third-party logistics provider. Brands hand it their products, and it handles the storing, packing and shipping. AMS has operated for more than 20 years and processes more than 10 million orders a year, mostly for premium beauty, wellness and direct-to-consumer brands.

• New sites in the Los Angeles, Salt Lake City and Philadelphia areas
• Stord's network now totals more than 100 locations
• AMS sites already use automated sorting systems and other warehouse technology

Who it affects

The most direct impact is on AMS customers. Stord says they will gain access over time to its wider fulfillment network, its parcel program and its commerce software. Stord did not say in the announcement when that will happen. Brands that sell online, especially in beauty and wellness, may eventually see more places to store and ship their goods.

The money behind it

Stord has been raising and borrowing money to grow. In October it secured a $400 million credit facility, a large line of credit, led by Citi. In May it raised $250 million in a Series F round, a funding round from investors, at a $3 billion valuation. The company says it handles more than $15 billion a year in gross merchandise value, meaning the total value of goods sold, for more than 1,000 brands.

What happens next

Stord plans to build on AMS's existing automation through Stord Labs, its robotics and artificial intelligence unit. The unit is developing tools to automate and improve how orders get filled. The company says its aim is to help brands with delivery speed, inventory management and operating efficiency. This follows Stord's January purchase of Shipwire, an AI fulfillment firm that added international reach.

What is not known yet

The material does not say how much Stord paid for AMS. It also gives no timeline for moving AMS customers onto Stord's network, and no details on which robotics or AI tools will be used. Any change in delivery speed or shipping costs for shoppers has not been described.