Ryder Completes Two Acquisitions to Expand E-Commerce Fulfillment Network and Add Multi-Client Warehousing Capability

Rhea-AI Summary

Ryder System, Inc. (NYSE: R) has completed two strategic acquisitions: Whiplash for $480 million on January 1, 2022, and Midwest Warehouse & Distribution System, enhancing its supply chain solutions. These acquisitions are expected to generate approximately $615 million in combined gross revenue for 2022, bolstering Ryder's e-commerce fulfillment network and multi-client warehousing capabilities. Whiplash brings a robust technology platform and a customer base of over 250 brands, while Midwest adds nine multi-client warehouses. The transactions aim to drive shareholder value and align with Ryder's growth strategy.

Positive

• Acquisition of Whiplash expected to add approximately $480 million in gross revenue for 2022.
• Midwest acquisition projected to contribute around $135 million in annual revenue for 2022.
• Enhanced e-commerce fulfillment network will allow delivery to 100% of the U.S. within two days.
• Increased capabilities in multi-client warehousing and distribution.
• Acquisitions align with Ryder's strategy to accelerate growth in higher-return supply chain solutions.

Negative

• Risks of integration challenges post-acquisition may disrupt current operations.
• Potential difficulties in employee retention due to transaction changes.
• Forward-looking statements carry uncertainties regarding expected revenue contributions.

Whiplash and Midwest Warehouse & Distribution System deals to accelerate growth in Ryder’s higher-return supply chain solutions business; add proven e-commerce technology and operating platform

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, announces it has completed the acquisitions of Whiplash, a national provider of omnichannel fulfillment and logistics services, and Midwest Warehouse & Distribution System (Midwest), a provider of warehousing, distribution, and transportation solutions.

Ryder completes acquisitions of Whiplash and Midwest Warehouse & Distribution System to accelerate growth in Ryder’s higher-return supply chain solutions business. The deals expand Ryder's e-commerce fulfillment network, add a proven e-commerce technology and operating platform, and add multi-client warehousing capabilities to the 3PL's end-to-end supply chain offerings. (Photo: Business Wire)

Ryder completed the Whiplash transaction on Jan. 1, 2022 for approximately $480 million in cash. It is accretive to shareholders and is expected to add approximately $480 million in gross revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022. Additionally, the company completed the Midwest acquisition on Nov. 1, 2021. It is expected to add approximately $135 million in annual revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022.

Whiplash

With the Whiplash acquisition, Ryder expands its e-fulfillment network with scalable e-commerce and omnichannel fulfillment solutions, a proven technology and operating platform, an impressive roster of more than 250 customer brands, and 19 dedicated and multi-client warehouses totaling nearly seven million square feet with access to key port operations and gateway markets. With the expanded footprint, Ryder’s e-commerce and omnichannel fulfillment solution is expected to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day.

Midwest Warehouse & Distribution System

The Midwest acquisition adds nine multi-client and eight dedicated-customer warehouses primarily serving food, beverage, and consumer packaged goods customers. Midwest’s warehouse space totals approximately seven million square feet and is supported by a company-owned fleet of trucks to service customers.

“The acquisitions are consistent with our strategy to accelerate growth in our higher-return supply chain business segment,” says Robert Sanchez, chairman and chief executive officer for Ryder. “With Whiplash, we gain a formidable e-fulfillment network supported by a best-in-class technology platform. With Midwest, we gain a proven model for multi-client warehousing and distribution, a capability that we’ve been targeting for some time. And, when you combine these expanded capabilities with Ryder’s end-to-end transportation logistics solutions, including our Ryder Last Mile delivery network for big-and-bulky goods, we are in a position to deliver significantly increased value for customers looking for more advanced supply chain solutions.”

For more information on the Whiplash acquisition, click here. For more on the Midwest acquisition, click here.

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 world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, Canada, and the United Kingdom. In addition, Ryder manages nearly 235,000 commercial vehicles and operates more than 300 warehouses, encompassing approximately 64 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 regarding the benefits of the transaction (including future revenue and earnings growth as a result of the transaction), are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this news release, including but not limited to: (i) the effect of the announcement or pendency of the transaction on Whiplash’s or Midwest’s business relationships, operating results, and business generally, (ii) risks that the transactions disrupt current plans and operations of Whiplash or Midwest and potential difficulties in employee retention as a result of the transactions, (iii) changes in general economic conditions, including as a result of the COVID-19 pandemic, (iv) the risk that the transactions will not add the forecasted revenue to Ryder’s supply chain solutions business segment; (v) the risk that the transactions will not provide the expected incremental growth to Ryder’s earnings in 2022; (vi) the ability to implement business plans, forecasts and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities. 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/20220104005795/en/

Anne Hendricks, Media

amhendricks@ryder.com

Amy Federman, Media

afederman@ryder.com

Bob Brunn, Investor Relations

bob_s_brunn@ryder.com

Source: Ryder System, Inc.

FAQ

What is the purpose of Ryder's recent acquisitions of Whiplash and Midwest?

The acquisitions aim to enhance Ryder's supply chain solutions, expand its e-commerce fulfillment network, and improve overall operational efficiency.

How much revenue are Ryder's acquisitions expected to add in 2022?

The Whiplash acquisition is expected to add approximately $480 million, while the Midwest acquisition is projected to contribute around $135 million, totaling about $615 million.

What advantages does the Whiplash acquisition bring to Ryder?

Whiplash provides scalable e-commerce and omnichannel fulfillment solutions, a proven technology platform, and access to a large customer base.

What is the expected impact of the Midwest acquisition on Ryder's operations?

The Midwest acquisition adds significant warehousing capabilities, including nine multi-client warehouses primarily serving food and consumer packaged goods.

When were the acquisitions of Whiplash and Midwest completed?

The Whiplash acquisition was completed on January 1, 2022, and the Midwest acquisition was finalized on November 1, 2021.