Acquisition Adds Robust Capabilities and Services to Ryder’s Supply Chain Portfolio for Food, Beverage, and Consumer Packaged Goods Industries
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.
About Ryder
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 release are
"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 and EPS
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.
Ryder System, Inc.
Media:
David Bruce, 305-500-4999
or
Investor Relations:
Bob Brunn, 305-500-4053