Ryder to Acquire Pit Stop Fleet Service
Ryder System, Inc. (NYSE: R) has announced its acquisition of Pit Stop Fleet Service, a move that will significantly expand its Torque by Ryder™ retail mobile maintenance business. The acquisition, expected to close by August 1, will add approximately $24 million in gross revenue to Ryder's business in 2025 and provide incremental growth to earnings. With this acquisition, Ryder's retail mobile maintenance services will be available in 140 markets across 20 states, with plans for further expansion.
The integration will bring Pit Stop's employees, assets, and operations under Ryder's umbrella, creating synergies and benefiting customers of both companies. Torque by Ryder™ will now have a workforce of about 200 technicians, offering comprehensive support for a wide range of commercial vehicles, including trucks, trailers, delivery vans, and emergency response vehicles.
- Expansion of Ryder's retail mobile maintenance business into 140 cities across 20 states
- Expected addition of $24 million in gross revenue to Ryder's Torque by Ryder™ business in 2025
- Incremental growth to Ryder's earnings anticipated from the acquisition
- Increase in workforce to about 200 technicians for Torque by Ryder™
- Potential synergies and benefits for both Ryder and Pit Stop customers
- None.
Insights
Ryder System, Inc.'s acquisition of Pit Stop Fleet Service is a strategic move that is likely aimed at strengthening Ryder's position in the retail mobile maintenance market. By adding approximately
From a financial perspective, this acquisition can lead to greater economies of scale, which may reduce operating costs and improve profit margins. Integrating Pit Stop's existing customer base and operations into Ryder's framework should create synergies, enhancing service quality and operational efficiency. However, investors should be cautious about potential integration risks, including the alignment of corporate cultures and operational systems. Historically, the success of such integrations hinges on effective execution and management oversight.
This acquisition significantly broadens Ryder's geographic footprint, expanding its mobile maintenance services to 140 cities across 20 states. This is a substantial increase in market presence, which is likely to enhance brand recognition and customer loyalty. The expansion aligns well with trends in the fleet management industry, where there is a growing demand for flexible and timely maintenance solutions. By offering these services across a diverse array of vehicle types, including commercial trucks, delivery vans and emergency response vehicles, Ryder is positioning itself as a versatile player capable of meeting varied customer needs.
For retail investors, the key takeaway is Ryder's ability to tap into new markets and customer segments, which could potentially lead to higher revenue streams and market share. The strategic focus on broadening service offerings and improving customer experience underscores Ryder's competitive advantage. However, it will be important to monitor how effectively Ryder can scale these services without compromising quality and customer satisfaction.
Expands Ryder’s retail mobile maintenance business, Torque by Ryder™, into 140 cities in 20 states
Ryder to acquire Pit Stop Fleet Service, enabling the expansion and further strengthening of Ryder’s Torque by Ryder™ retail mobile maintenance business offering, which will accelerate growth of this product solution. (Photo: Business Wire)
The transaction, which Ryder expects to complete by August 1, subject to customary closing conditions, is expected to add approximately
Ryder expects the transaction to create synergies and to benefit both Ryder and Pit Stop customers. To ensure a seamless experience for customers, Ryder will fully integrate Pit Stop employees, assets, and operations. Ron and Connie Perry, who co-founded Pit Stop in 1997, will help support the integration into Ryder.
“With our complementary retail mobile maintenance fleet services across diverse industries and markets, we now have even greater economies of scale and offer unparalleled flexibility for fleets requiring swift maintenance services,” says Tom Havens, president of Fleet Management Solutions at Ryder.
With this latest Ryder acquisition, Ryder’s retail mobile maintenance services will be available in 140 markets in 20 states:
“We chose Ryder to continue the legacy that we have built over the past couple of decades because of their company culture and operating alignment to always do right by the customer,” says Pit Stop Vice President John Croke. “In thinking about the future, I wanted to make sure our employees are in a company that will give them ample opportunities to grow, and our customers are in the best possible hands. I believe Ryder is the ideal home for both,” adds Ron Perry.
Since its launch in the summer of 2023 and with this acquisition, Torque by Ryder™ will have a workforce of about 200 technicians, delivering comprehensive support to customers. This includes a wide range of vehicles serviced, including commercial trucks, trailers, delivery vans, refrigerated vehicles, construction and utility vehicles, passenger and shuttle buses, and emergency response vehicles.
For more information about Torque by Ryder™, visit torquebyryder.com or call 833-9-TORQUE (986-7783).
About Ryder System, Inc.
Ryder System, Inc. (NYSE: R) is a fully integrated port-to-door logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including warehousing and distribution, contract manufacturing and packaging, e-commerce fulfillment, last-mile delivery, managed transportation, professional drivers, freight brokerage, nearshoring solutions, full-service leasing, maintenance, commercial truck rental, and used vehicle sales to some of the world’s most-recognized brands. Ryder provides services throughout
Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are “forward-looking statements” within meaning the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements, including our expectations with respect to Torque by Ryder™, the Pit Stop acquisition and integration, and any impacts of the acquisition on revenue, earnings, and operations, 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.
Ryder-fms
View source version on businesswire.com: https://www.businesswire.com/news/home/20240715635600/en/
Jonathan Mayor, Jonathan_C_Mayor@ryder.com
Amy Federman, afederman@ryder.com
Source: Ryder System, Inc.
FAQ
What company is Ryder System (NYSE: R) acquiring?
How much revenue is the Pit Stop acquisition expected to add to Ryder's business?
When is the Ryder-Pit Stop acquisition expected to close?
How many states will Ryder's retail mobile maintenance services cover after the acquisition?
What types of vehicles will Torque by Ryder™ service after the Pit Stop acquisition?
