Ryder Acquires E-Commerce and Omnichannel Fulfillment Provider Dotcom Distribution

Rhea-AI Summary

Ryder System, Inc. (NYSE: R) has acquired Dotcom Distribution, enhancing its e-commerce fulfillment capabilities for high-value markets like health, beauty, and fashion. This strategic acquisition includes a 400,000-square-foot fulfillment center in Edison, New Jersey, aimed at expanding Ryder's national footprint. The experienced leadership of Dotcom, including CEO Maria Haggerty, will join Ryder to facilitate a smooth integration. Ryder aims to leverage synergies and accelerate growth in omnichannel solutions, continuing its commitment to innovation and customer satisfaction.

Positive

• Acquisition of Dotcom Distribution strengthens e-commerce solutions.
• Addition of a 400,000-square-foot fulfillment facility in New Jersey expands national reach.
• Experienced leadership from Dotcom will aid in seamless customer transition.
• Acquisition aligns with Ryder's strategy to diversify offerings in high-growth verticals.
• Ryder's e-commerce solution now delivers throughout the U.S. within two days.

Negative

• None.

The acquisition will further bolster Ryder’s e-commerce solution for B2B and B2C brands in high-value verticals including health, beauty and cosmetics, and fashion and apparel

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, announces it has acquired Dotcom Distribution, a provider of omnichannel fulfillment and distribution services for high-growth retail and e-commerce brands specializing in health, beauty and cosmetics, and fashion and apparel.

Ryder acquires Dotcom Distribution, a provider of omnichannel fulfillment and distribution services for high-growth retail and e-commerce brands specializing in health, beauty and cosmetics, and fashion and apparel. (Photo: Business Wire)

With the acquisition, Ryder continues to expand its e-fulfillment network with the opportunity to add an impressive roster of consumer brand names and increase its national footprint with the addition of a 400,000-square-foot multiclient fulfillment facility in Edison, New Jersey. Additionally, Dotcom Distribution’s experienced leadership team, including founder and CEO Maria Haggerty, and the company’s operations team, totaling approximately 100 full-time employees, will join Ryder to ensure a seamless transition for customers.

“Dotcom Distribution has been doing e-fulfillment since e-commerce was still in its infancy. Maria and her team bring 22 years of knowledge, expertise, and experience in helping customers weather market fluctuations. That’s a big benefit for Ryder,” says Steve Sensing, president of supply chain solutions for Ryder. “This acquisition also affords us the opportunity to expand our e-fulfillment portfolio in new industry verticals in health, beauty and cosmetics, which is in line with our larger strategy to grow and diversify our portfolio.”

“We chose Ryder for its nearly 90 years of logistics expertise, its sophisticated fulfillment, distribution, and transportation network, and commitment to staying at the forefront of innovation – all of which deliver the speed-to-market, scalability, and elevated brand experience that our customers expect,” says Haggerty.

Earlier this year, Ryder announced the acquisition of another e-commerce and omnichannel fulfillment provider, Whiplash. The company had established itself as a leading national provider of scalable solutions to more than 250 digitally native brands and omnichannel retailers, backed by a proven e-commerce technology and operating platform.

“We look forward to welcoming Dotcom Distribution’s customers into the Ryder family of brands and capitalizing on the synergies created with the acquisition, as well as the improved scalability, flexibility, and speed-to-market that our omnichannel and e-commerce fulfillment technology delivers,” says Jeff Wolpov, senior vice president of Ryder E-commerce by Whiplash.

Ryder’s e-commerce and omnichannel fulfillment solution now delivers to 100% of the U.S. within two days and 60% of the U.S. within one day.

For the Dotcom Distribution transaction, Wofford Advisors LLC acted as strategic advisor and Gunster acted as legal counsel for Ryder. G2 Capital Advisors acted as exclusive financial advisor and Stradley Ronon served as legal counsel to Dotcom Distribution.

About Ryder System, Inc.

Ryder System, Inc. (NYSE: R) is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including full service leasing, rental, and maintenance, used vehicle sales, professional drivers, transportation services, freight brokerage, warehousing and distribution, e-commerce fulfillment, and last mile delivery services, to some of the world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, Canada, and the United Kingdom. In addition, Ryder manages nearly 239,000 commercial vehicles and operates more than 330 warehouses, encompassing more than 80 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmentally friendly solutions, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com

Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements, including our expectations with respect to expanding our e-fulfillment network, diversifying our portfolio, the performance of our omnichannel and e-commerce fulfillment technologies, and the expected synergies of the transaction, are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006080/en/

Anne Hendricks

(305) 500-4547

amhendricks@ryder.com

Amy Federman

(305) 500-4989

afederman@ryder.com

Source: Ryder System, Inc.

FAQ

What is the significance of Ryder's acquisition of Dotcom Distribution?

The acquisition enhances Ryder's e-commerce fulfillment capabilities, particularly in high-value sectors like health and beauty.

What are the expected benefits of the Dotcom Distribution acquisition for Ryder?

Ryder anticipates increased scalability, improved speed-to-market, and expanded customer reach in the e-commerce space.

How will the Dotcom Distribution acquisition impact Ryder's stock (NYSE: R)?

The acquisition may positively impact Ryder's stock by expanding its market presence and revenue potential in e-fulfillment.

What are the key facilities involved in Ryder's acquisition of Dotcom Distribution?

The acquisition includes a 400,000-square-foot multiclient fulfillment center located in Edison, New Jersey.

Who is leading Dotcom Distribution after the acquisition by Ryder?

Maria Haggerty, the founder and CEO of Dotcom Distribution, will join Ryder's leadership team post-acquisition.