Ryder To Acquire Whiplash For About $480 Mln Cash - Quick Facts

(RTTNews) - Logistics and transportation company Ryder System, Inc. (R) announced Monday that it has entered into a definitive agreement to acquire Whiplash, a leading national provider of omnichannel fulfillment and logistics services, for approximately $480 million in cash.

City of Industry, California-based Whiplash provides scalable e-commerce and omnichannel fulfillment solutions to an impressive roster of more than 250 brands. The company's 19 dedicated and multi-client warehouses total nearly seven million square feet and provide access to key port operations and gateway markets.

The transaction 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.

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 expects to integrate Whiplash's facilities, operations, technology, and warehouse automation and robotics into its e-commerce fulfillment solution within the supply chain solutions business unit.

Additionally, Ryder plans to retain Whiplash's executive team and workforce, with their proven operational expertise, to execute the growth and customer solutions in this segment.

The acquisition will add to Ryder's current e-commerce fulfillment network with ten new facilities. Additionally, the acquisition strengthens Ryder's 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.

With the expanded footprint following the acquisition, Ryder's e-commerce and omnichannel fulfillment 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.