Acquisition Adds Robust Capabilities and Services to Ryder’s Supply Chain Portfolio for Food, Beverage, and Consumer Packaged Goods Industries
MIAMI, Jan 05, 2011 — Ryder System, Inc. (NYSE:R), a leader in supply chain, warehousing and transportation management solutions, today announced it has completed the previously announced acquisition of Holland, Michigan-based Total Logistic Control (TLC). TLC is a leading provider of comprehensive supply chain solutions to food, beverage, and consumer packaged goods (CPG) manufacturers with significant supply chains in the U.S. The stock acquisition was completed on December 31, 2010 at a price of approximately $200 million.
The acquisition is expected to add approximately $250 million in annual revenue to Ryder’s Supply Chain Solutions (SCS) business segment, and be accretive to Ryder’s earnings in 2011. Former TLC President & CEO Peter Westermann and members of the entire TLC organization will continue to work and serve clients in similar roles as part of Ryder’s Supply Chain Solutions business segment. The TLC business will now operate as Ryder Supply Chain Solutions’ consumer packaged goods industry group.
“The completion of this acquisition immediately strengthens the breadth and depth of our Supply Chain Solutions offering,” said Ryder Chairman and CEO Greg Swienton. “TLC has all the elements to help us accelerate our capabilities and growth prospects in a high potential industry sector that we have been targeting for expansion. We are pleased to be able to utilize Ryder’s solid financial position and available leverage to make this important investment in our future,” he added.
Commenting further, Ryder’s President of Global Supply Chain Solutions John Williford said, “Many months ago we announced our intention to develop a new industry group focused on the CPG industry. TLC’s leading capabilities in the areas of packaging and warehousing, including temperature-controlled facilities, will continue to be at the center of Ryder’s CPG offering. To TLC’s proven service platform, Ryder brings a range of new capabilities that are very relevant to the needs of new and existing CPG clients. Through this acquisition we have come together to form a single industry leading resource, with a strong financial platform in place to support further development of CPG-related innovations and capabilities.”
TLC provides clients a broad suite of end-to-end services, including distribution management, contract packaging services and solutions engineering. TLC’s clients consist of local, regional, national, and international firms engaged in food and beverage manufacturing, consumer and wholesale distribution. TLC operates 34 facilities comprising 10.6 million square feet of dry and temperature-controlled warehousing across 13 states.
“We’re excited to continue serving our clients with the strengthened resources and additional capabilities that Ryder will bring,” said Mr. Westermann. “As part of Ryder, our team looks forward to delivering even more value to our clients, including lean principles, advanced logistical engineering, continuous improvement, and leading dedicated contract carriage and transportation management services that will help strengthen our existing clients’ performance. Together, we can now go to market with a powerful new integrated resource to serve a wide range of food, beverage and consumer packaged goods businesses that are looking to drive continuously higher efficiency into their operations.”
Ryder’s Supply Chain Solutions (SCS) business segment enables clients to improve shareholder value and their customers’ satisfaction by enhancing supply chain performance and reducing costs. By improving business processes and employing new technologies, the flow of goods and cash accelerates and consumes less capital. Ryder’s SCS services are focused on providing differentiated execution and proactive, innovative solutions in targeted vertical industry sectors, including automotive, high-tech, industrial and retail groups and consumer packaged goods.
Ryder is a Fortune 500 company providing leading-edge transportation, logistics and supply chain management solutions worldwide. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. For more information about Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward-Looking Statements:Certain statements and information included in this news releaseare “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995 including, without limitation, expectations regarding the impact of the acquisition on revenue andEPS in 2011, our expectations regarding the benefits of the acquisition and the retention of TLC’s employees.These forward-looking statements 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 with respect to the impact of the transaction, our ability to integrate and realize the anticipated benefits of the acquisition and 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.
SOURCE: Ryder System, Inc.