Acquisition Will Deliver a Larger e-Commerce Fulfillment Network, Positioning Ryder as Second Largest Last Mile Delivery Provider of Big and Bulky Goods across the U.S. and Canada

Ryder System, Inc. (NYSE:R), a leader in commercial fleet management, dedicated transportation, and supply chain solutions, today announced it is strengthening its omni-channel fulfillment capabilities through the acquisition of all outstanding equity of MXD Group (MXD), an e-commerce fulfillment provider with a national network of facilities, including last mile capabilities. With this acquisition—completed on April 2, 2018, at a price of approximately $120 million—Ryder is now the second largest last mile delivery provider of big and bulky goods.

Ryder has acquired 109 MXD e-commerce fulfillment facilities across the U.S. and Canada, including 21 MXD-operated cross dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities. The acquisition also includes proprietary order management and visibility technology, which features real-time tracking and a customer service portal for rapid response and resolution. This significantly expands Ryder’s omni-channel fulfillment capabilities in two key areas:

• Ryder e-Commerce Fulfillment – With the additional 109 facilities, Ryder’s network now includes 121 e-commerce hubs covering more than 95% of the U.S. and Canada within a two-day delivery timeframe. The network can serve any industry, as it can handle big and bulky products as well as small and large parcels.
• Ryder Last Mile – A last mile solution for retailers and shippers of big and bulky products will include home delivery and white glove installation with multiple tiers of service and a network of carriers throughout the U.S. and Canada.

“As many industries continue to be disrupted by the growth of e-commerce, Ryder remains at the forefront of helping our customers find new solutions,” said Robert Sanchez, Ryder Chairman & CEO. “This acquisition will enable many of the businesses we serve to better meet their customers’ demands, which are constantly and rapidly changing amid a heightened e-commerce era. The acquisition of MXD is one of several strategic investments we are making to overcome the disruptions we are seeing in the market today and to position Ryder for future growth.”

“This acquisition provides Ryder the opportunity to tap into an established network in the U.S. and Canada serving manufacturers, retailers, and their customers, who have come to expect rapid deliveries,” said Steve Sensing, Ryder President of Global Supply Chain Solutions. “E-fulfillment has become more critical to our customers than ever before, and with this new, expanded footprint, we’ll be better positioned to lead the charge in delivering a complete turnkey solution that not only includes warehousing, distribution, and transportation management, but also home delivery and white glove installation.”

The acquisition, completed on April 2, 2018, is expected to be nominally accretive to earnings in 2018. Ryder anticipates earnings growth in future years to come from introducing these services to its extensive current customer base and leveraging its sales and marketing capabilities to attract new customers.

Globally-recognized brands in the retail, consumer goods, technology, automotive, food and beverage, healthcare, industrial, and oil and gas industries rely on Ryder’s leading-edge technologies and world-class logistics engineers to help them deliver the goods that consumers use every day. Ryder’s LEAN culture helps businesses achieve peak performance and increase profitability and efficiency – all while improving quality. Operating more than 207 facilities with 50 million square feet of warehouse space, Ryder currently provides comprehensive logistics and supply chain management solutions to companies with operations primarily in the U.S., Canada, Mexico, as well as contracts with more than 3,100 carriers in all modes of transportation in the markets it serves.

About Ryder

Ryder is a FORTUNE 500® commercial fleet management, dedicated transportation, and supply chain solutions company. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the S&P MidCap 400® index. Ryder has been named among FORTUNE’s World’s Most Admired Companies, and has been recognized for its industry-leading practices in third-party logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and security programs. The Company is a proud member of the American Red Cross Disaster Responder Program, supporting national and local disaster preparedness and response efforts. For more information, visit www.ryder.com, and follow us on our Online Newsroom and social media pages: Facebook, LinkedIn, Twitter, and YouTube.

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 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 System, Inc.
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