Acquisition Strengthens Ryder’s Supply Chain Capabilities and Service to Clients in the Food, Beverage, and Consumer Packaged Goods Industries
MIAMI, FL, Dec 08, 2010 (MARKETWIRE via COMTEX) —
Ryder System, Inc. (NYSE: R), a leader in supply chain, warehousing and transportation management solutions, today announced it has signed an agreement to acquire Holland, Michigan-based Total Logistic Control (TLC), an independently run, wholly owned subsidiary of SUPERVALU. 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.
Ryder will acquire TLC for cash under a stock purchase agreement. The acquisition is expected to add approximately $250 million in annual revenue to Ryder’s Supply Chain Solutions business segment. The acquisition is anticipated to be accretive to Ryder’s earnings per share in 2011, excluding one-time transaction costs. Subject to closing conditions and regulatory approvals, the acquisition is expected to close on December 31, 2010.
“Total Logistic Control is a well-known and highly regarded supply chain solutions provider in the demanding industry sectors that it serves. The company has a client-focused management team, operational expertise, and strong, deeply established relationships with blue chip Fortune 1000 clients operating in food, beverage and CPG, which are high-potential industry sectors that Ryder’s Supply Chain Solutions business segment has targeted for growth,” said Ryder Chairman and CEO Greg Swienton. “This acquisition expands our Supply Chain Solutions offering with firmly established, comprehensive food, beverage and CPG capabilities, to complement our suite of automotive, high-tech, industrial and retail groups. Additionally, the acquisition serves as an effective use of available financial leverage and is consistent with our direction for Ryder’s long-term leverage targets.”
Commenting further, Ryder’s President of Global Supply Chain Solutions John Williford said, “This strategic acquisition is an exact fit with our strategy of developing a leading CPG capability and strengthening our focus in key vertical industry sectors. By bringing the TLC organization and operations over to Ryder intact, we are able to immediately deliver best in class supply chain solutions to a broad range of new and existing food, beverage and CPG clients. Going forward, we will build on TLC’s proven and highly regarded packaging and temperature-controlled warehousing capabilities by integrating client solutions using Ryder’s well-established strengths in Dedicated Contract Carriage, Transportation Management, lean operational execution and logistics engineering. We look forward to providing clients with innovative solutions in Ryder’s new CPG vertical industry group.”
“We are proud of the reputation we’ve earned and our strong capabilities in serving the food, beverage, and CPG industries,” said Total Logistic Control President & CEO Peter Westermann. “This acquisition will allow us to join together as one company to form the industry’s most reputable and recognized provider of supply chain solutions and become the market leader for logistics services in the consumer packaged goods sector. We are excited about the opportunities for growth and we look forward to joining Ryder to provide even greater value to our clients.”
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. TLC’s management team and 2,500 employees are expected to continue in similar roles with Ryder.
Ryder’s Supply Chain Solutions business segment enables clients to improve shareholder value and their customers’ satisfaction by enhancing supply chain performance and reducing costs. The solutions involve management of the logistics pipeline as a synchronized, integrated process — from materials and components to finished goods distribution. By improving business processes and employing new technologies, the flow of goods and cash is made faster and consumes less capital.
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery channel with estimated annual sales of $38 billion. SUPERVALU serves clients across the United States through a network of approximately 4,280 stores composed of approximately 1,160 traditional retail stores, including 813 in-store pharmacies; 1,210 hard-discount stores, of which 876 are operated by licensee owners; and 1,910 independent stores serviced primarily by the company’s traditional food distribution business. SUPERVALU has approximately 150,000 employees. For more information about SUPERVALU visit www.supervalu.com.
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.