Werner Enterprises Announces Sale of Werner Global Logistics to Scan Global Logistics Group

Rhea-AI Summary

Werner Enterprises (NASDAQ: WERN) announced the sale of its Werner Global Logistics (WGL) freight forwarding services to Scan Global Logistics Group (SGL). This strategic move allows Werner to concentrate on its North American logistics services, including truck brokerage and freight management. The sale, generating $53 million in revenue for fiscal 2020, is expected to yield a gain of one cent per diluted share and is set to close on February 26, 2021. The partnership with SGL will enhance WGL customers' access to SGL's global logistics network.

Positive

• The sale of WGL allows Werner to focus on its robust North American logistics services.
• The transaction is expected to result in a gain of one cent per diluted share.
• WGL generated $53 million in revenue in fiscal 2020, indicating a solid financial performance.

Negative

• None.

OMAHA, Neb., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (NASDAQ: WERN) (“Werner”), one of the nation’s largest transportation and logistics companies, announced the sale of its Werner Global Logistics (“WGL”) freight forwarding services for international ocean and air shipments to Scan Global Logistics Group (“SGL”). Werner Logistics will continue to provide North American truck brokerage, freight management, intermodal and final mile services. Werner also entered into an agreement with SGL to offer comprehensive international logistics solutions to its existing and future North American customers. WGL provides services to customers with international freight forwarding operations primarily in the United States, China and Mexico.

Through the agreement with SGL, WGL customers will benefit from SGL’s expansive network of over 115 locations across the globe, their modern transportation management technology, global multi-channel service offerings and SGL’s ability to provide local and international solutions in new trade lanes across the Asian Pacific, European, Middle-Eastern and Latin American markets. The strategic selection of SGL was based on their close alignment with Werner’s customer-centric business practices, associate-focused business approach and global logistics expertise. SGL has logistics and freight forwarding operations in over 30 countries and has over 40 offices in North America.

“After working with the SGL team and understanding their core values and capabilities, I am excited for WGL’s international customers, associates and transportation partners worldwide,” said Werner’s Vice Chairman, President and Chief Executive Officer Derek Leathers. “We are proud of the global operation WGL has built and are confident it will continue to succeed as part of the SGL family. Going forward, we remain committed to our North American logistics capabilities in truck brokerage, freight management, intermodal and final mile services.” Werner will continue to focus its resources, talent and technology by providing superior truckload and logistics services in North America.

“Innovative solutions in logistics has been our focus for over three decades,” said SGL’s North American Chief Operating Officer - International Julien Ranzato. “Werner’s established culture, leadership, network and core values are a great fit for us, and we look forward to continuing and expanding our relationship with Werner on international and domestic business opportunities that will result from this strategic partnership.”

WGL’s freight forwarding services for international ocean and air shipments generated $53 million of revenues in fiscal year 2020. The WGL sale is expected to result in a gain of one cent per diluted share and close on February 26, 2021. Terms of the agreement were not disclosed. BG Strategic Advisors acted as exclusive financial advisor to Werner.

Werner was founded in 1956 and is a premier transportation and logistics company, with coverage throughout North America. Werner maintains its corporate headquarters in Omaha, Nebraska and maintains offices in the United States, Canada and Mexico. Werner is among the five largest truckload carriers in the United States, with a diversified portfolio of transportation services that includes dedicated; medium-to-long-haul, regional and expedited van; and temperature-controlled. The Werner Logistics portfolio includes North American truck brokerage, freight management, intermodal and final mile services.

SGL has been in the international freight forwarding business since 1975 and is headquartered in Denmark, with North American headquarters in Seattle, WA, USA.  SGL’s business activities focus on international freight-forwarding services worldwide primarily by air and sea, with supporting IT, logistics, warehousing and road services. The SGL Group maintains offices in 30 countries on 6 continents.   SGL’s main focus is to create solutions to complex logistics challenges.  For more information please visit www.scangl.com.

Werner’s common stock trades on the NASDAQ Global Select Market^SM under the symbol “WERN.” For further information about Werner, visit the company’s website at www.werner.com.

Contact: John J. Steele
Executive Vice President, Treasurer
and Chief Financial Officer
(402) 894-3036

 

FAQ

What was announced in Werner Enterprises' January 2021 press release?

Werner announced the sale of its Werner Global Logistics freight forwarding services to Scan Global Logistics Group.

How much revenue did WGL generate in fiscal 2020?

WGL generated $53 million in revenue in fiscal year 2020.

When is the sale of WGL expected to close?

The sale is expected to close on February 26, 2021.

What is the expected financial impact of the WGL sale for Werner's shareholders?

The sale is expected to result in a gain of one cent per diluted share.

How will the sale affect Werner's business operations?

Werner will now focus on its North American logistics capabilities, including truck brokerage and freight management.