Ryder completes acquisitions of Whiplash and Midwest Warehouse & Distribution System to accelerate growth in supply chain solutions (Photo: Business Wire)
Ryder System Inc. is extending its capability to make U.S. deliveries in two days or less by purchasing an omnichannel fulfillment technology platform and 38 warehouses.
The third-party supply chain, transportation and fleet management solutions provider has acquired Whiplash and Midwest Warehouse & Distribution System (Midwest). Ryder completed the Whiplash transaction on Jan. 1, 2022 for approximately $480 million in cash. Additionally, the company completed the Midwest acquisition on Nov. 1, 2021.
The deals are intended to expand Ryder's e-commerce fulfillment network, as well as add an e-commerce technology and operating platform, along with multi-client warehousing capabilities, to the company’s end-to-end supply chain offerings. More details on each acquisition follow.
With the Whiplash acquisition, Ryder expands its e-fulfillment network with scalable e-commerce and omnichannel fulfillment solutions, a technology and operating platform, a roster of more than 250 customer brands, and 19 dedicated and multi-client warehouses totaling nearly 7 million square feet with access to key port operations and gateway markets.
Leveraging its newly expanded footprint, Ryder’s e-commerce and omnichannel fulfillment solution is expected to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day.
The Whiplash purchase is accretive to shareholders and is expected to add approximately $480 million in gross revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022. It is expected to add approximately $135 million in annual revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022.
Midwest Warehouse & Distribution System
The acquisition of Midwest, a warehousing, distribution, and transportation solutions company, adds nine multi-client and eight dedicated-customer warehouses. The warehouses primarily serve food, beverage, and consumer packaged goods customers. Midwest’s warehouse space totals approximately seven million square feet and is supported by a company-owned fleet of trucks to service customers.
Ryder is bolstering its ability to deliver goods in one to two days as retailers face continuing supply chain delays. According to a recent study by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania, 98% of surveyed senior retail executives agree that supply chain issues will continue impacting the retail sector through 2022 and beyond.
“The acquisitions are consistent with our strategy to accelerate growth in our higher-return supply chain business segment,” said Robert Sanchez, chairman and chief executive officer for Ryder. “With Whiplash, we gain a formidable e-fulfillment network supported by a best-in-class technology platform. With Midwest, we gain a proven model for multi-client warehousing and distribution, a capability that we’ve been targeting for some time. And, when you combine these expanded capabilities with Ryder’s end-to-end transportation logistics solutions, including our Ryder Last Mile delivery network for big-and-bulky goods, we are in a position to deliver significantly increased value for customers looking for more advanced supply chain solutions.”