Ryder has announced it has entered into a definitive agreement to acquire Whiplash, a national provider of omnichannel fulfilment and logistics services, for approximately $480m in cash.
Based in City of Industry, Calif., Whiplash provides scalable e-commerce and omnichannel fulfilment solutions to more than 250 brands. The company’s 19 dedicated and multi-client warehouses total nearly 7m sq ft and provide access to key port operations and gateway markets.
The transaction is accretive to shareholders and is expected to add approximately $480m in gross revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022.
Ryder and Whiplash expect to complete the transaction in late December 2021 or early January 2022, subject to satisfaction of antitrust approvals and customary closing conditions.
Ryder Chairman and Chief Executive Officer Robert Sanchez commented: “The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business. It also expands our e-commerce and omnichannel fulfilment network and reflects our continued focus on technology and innovation”.
Ryder expects to integrate Whiplash’s facilities, operations, technology, and warehouse automation and robotics into its e-commerce fulfilment solution within the supply chain solutions business unit. Additionally, Ryder plans to retain Whiplash’s executive team and workforce to execute the growth and customer solutions in this segment.
The acquisition will add to Ryder’s current e-commerce fulfilment network with new facilities in Chino, Calif; City of Industry, Calif.; Long Beach, Calif.; Jacksonville, Fla.; Savannah, Ga.; Newark, N.J.; Secaucus, N.J.; Clifton, N.J.; Columbus, Ohio; Salt Lake City, Utah; and Sumner, Wash. Additionally, Ryder hopes the acquisition will strengthen its presence in key port operations, providing four-corner coverage of all major U.S. inbound gateways via Seattle/Tacoma, New York/New Jersey, Savannah, and Long Beach.
Following the acquisition, Ryder’s e-commerce and omnichannel fulfilment solution is expected to be able to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day.
Source: Ryder
