Werner Enterprises Acquires Leading Final Mile Carrier NEHDS Logistics, LLC
November 29 2021 - 4:15PM
Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s
largest transportation and logistics companies, today announced it
has signed a definitive agreement and has closed on the acquisition
of NEHDS, based in Monroe, Connecticut, for a purchase price of $64
million, which includes a $4 million earnout. NEHDS operates a
fleet of over 400 delivery trucks primarily in the Northeast and
Midwest U.S. corridors. NEHDS delivers primarily big and bulky
products using 2-person delivery teams performing residential and
commercial deliveries through a network of 19 cross dock, warehouse
and customer facilities.
“The addition of the NEHDS operations,
management team, talented staff and strong customer relationships
to the Werner family represents a significant step forward in our
Final Mile delivery program. The combination of award winning
service that NEHDS provides to its clients, along with the
comprehensive portfolio of trucking capability, final mile
logistics services and technology will bring the Werner and NEHDS
customer base many advantages,” said Derek Leathers, Chairman,
President and Chief Executive Officer.
NEHDS skilled drivers, operations team,
independent contractors and facilities network strengthen our big
and bulky products delivery offering by adding asset and
employee-based operations with experience in complex deliveries to
our already established national network of independent contractor
agent locations. We expect this transaction to be accretive in 2022
and anticipate cost synergies in several areas of the business.
- Shared values of obtaining winning
customers with high expectations, establishing long-term mutual
service objectives, and delivering best-in-class performance in the
service-sensitive, consumer driven ecommerce delivery market.
- The talented NEHDS leadership team,
drivers, non-driver associates and independent contractors will
remain with the business, and we will rebrand NEHDS into Werner
Final Mile.
- Cost-saving synergies based on
Werner’s size and buying power and collaboration between NEHDS and
Werner Final Mile.
Leathers continued, “Both companies share a
passion for valuing its professional drivers, associates and
customers. We look forward to welcoming the NEHDS team and working
together to maintain and grow the excellent relationships with
current customers, independent contractors, employee drivers and
office associates. We are excited at the opportunity to create
additional value for new and existing customers. We remain
committed to profitably growing our Logistics portfolio.”
“With a deep heritage of compassion for all
associates, contractors and customers, we are grateful to unite
with a likeminded company in Werner that has similar core values to
NEHDS. Werner’s technology, logistical expertise and geographic
footprint is extremely attractive in partnering together. I am
personally grateful for the opportunity to join the Werner team
along with our entire management team, associates and contractors,”
said Gerry Burdo, Founder and President of NEHDS.
Werner financed the transaction through a
combination of cash on hand and existing credit facilities.
Beginning in fourth quarter 2021, NEHDS financial results will be
included in the Werner Logistics segment.
Conference Call Information
Werner Enterprises, Inc. will conduct a
conference call to discuss the NEHDS acquisition on November 29,
2021 beginning at 4:00 p.m. CT. The news release, live webcast of
the conference call, and accompanying slide presentation will be
available at www.werner.com in the “Investors” section under
“News & Events” and then “Events Calendar.” To participate in
the conference call, please dial (844) 701-1165 (domestic) or (412)
317-5498 (international). Please mention to the operator that you
are dialing in for the Werner Enterprises call. A replay of the
conference call will be available on November 29, 2021 at
approximately 7:00 pm CT through December 28, 2021 by dialing (877)
344-7529 (domestic) or (412) 317-0088 (international) and using the
access code 5979406. A replay of the webcast will also be available
at www.werner.com in the “Investors” section under “News &
Events” and then “Events Calendar.”
About Werner Enterprises
Werner Enterprises, Inc. (Nasdaq: WERN) delivers
superior truckload transportation and logistics services to
customers across the United States, Mexico and Canada. With 2020
revenues of $2.4 billion, an industry-leading modern truck and
trailer fleet, over 13,000 talented associates and our innovative
Werner EDGE technology, we are an essential solutions provider for
customers who value the integrity of their supply chain and require
safe and exceptional on-time service. Werner provides Dedicated and
One-Way Truckload services as well as Logistics services that
include truckload brokerage, freight management, intermodal and
final mile. As an industry leader, Werner is deeply committed to
promoting sustainability and supporting diversity, equity and
inclusion.
About NEHDS
NEHDS Logistics, LLC is a premium Final Mile
logistics service provider founded in 2006, specializing in the
white glove delivery, installation, warehousing and inventory
management of home furniture and appliances. NEHDS has significant
regional density with 19 fully managed or operated locations
primarily in the Northeast and Midwest U.S. with additional
facilities in the Mid-Atlantic and Southeast with a fleet of over
400 delivery trucks.
Advisors
Koley Jessen P.C., L.L.O. served as legal
counsel to Werner Enterprises. Eckert Seamans Cherin & Mellott,
LLC served as legal counsel to NEHDS Logistics.
Forward Looking Statements
This press release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, and made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
as amended. Such forward looking statements are based on
information presently available to the Company’s management and are
current only as of the date made. Actual results could also differ
materially from those anticipated as a result of a number of
factors, including, but not limited to, those discussed in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2020 and subsequently filed Quarterly Reports on Form 10-Q.
For those reasons, undue reliance should not be
placed on any forward-looking statement. The Company assumes no
duty or obligation to update or revise any forward-looking
statement, although it may do so from time to time as management
believes is warranted or as may be required by applicable
securities law. Any such updates or revisions may be made by filing
reports with the U.S. Securities and Exchange Commission, through
the issuance of press releases or by other methods of public
disclosure.
Contact:John J. SteeleExecutive Vice President, Treasurer and
Chief Financial Officer(402) 894-3036
Source: Werner Enterprises, Inc.
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