Ryder System Inc., best known for its fleet of trucks for rent bearing its name, is moving even more quickly into ecommerce logistics.
In addition to managing a fleet of 255,000 vehicles, Ryder operates 55 million square feet of warehouse and distribution space and provides supply chain management to a range of industries including ecommerce.
To grow and diversify its range of logistics services to ecommerce companies, Ryder is acquiring Whiplash, a national provider of fulfillment and logistics services, for approximately $480 million in cash.
Based in City of Industry, California, Whiplash provides ecommerce and fulfillment services to more than 250 brands. Whiplash operates 19 warehouses totaling seven million square feet and provides access to “key port operations and gateway markets,” the company says.
The deal is expected to close sometime before the end of March, Ryder says. “The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business” says Robert Sanchez, Ryder’s chairman and CEO. “It also expands our ecommerce and omnichannel fulfillment network and reflects our continued focus on technology and innovation.”
Reaching 60% of the U.S. within one day
Whiplash has been in business since 2007 and offers a range of services, including order fulfillment, ecommerce technology, robotics, and distribution and delivery services.
“With ecommerce sales continuing to hit record levels and omnichannel retailing becoming mainstream, we’re seeing a significant uptick in brands looking for more dynamic fulfillment services,” says Ryder president of global supply chain solutions Steve Sensing. “Our combined customers will benefit from that additional flexibility as well as Ryder’s nationwide network.”
When the deal is complete, Ryder’s ecommerce and omnichannel fulfillment services are expected to be able to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day, the company says.
Ryder will integrate Whiplash’s facilities, operations, technology, and warehouse automation and robotics into its ecommerce fulfillment operation within the supply chain solutions business unit, Ryder says.
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