Werner Enterprises Acquires Premier Truckload Carrier Baylor Trucking, Inc.
October 03 2022 - 8:30AM
Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s
largest transportation and logistics companies, announced today it
has signed a definitive agreement and closed on the acquisition of
FAB9, Inc., doing business as Baylor Trucking, Inc. (“Baylor”).
Founded in 1946, Baylor is an award-winning and premier truckload
carrier that operates 200 trucks and 980 trailers in the east
central and south central U.S., with their network of two
terminals.
“Baylor, with its highly-skilled professional
drivers and non-driver associates, further strengthens our
portfolio with their exceptional service and stellar reputation,”
said Derek Leathers, Chairman, President and Chief Executive
Officer. “I have known Cari Baylor for many years and I have
tremendous respect for what Cari, her family and her leadership
team have created at Baylor. This acquisition delivers on our
Werner DRIVE strategy and will position us for further growth. We
expect this transaction to be accretive in year one and anticipate
buying power synergies through integrated management of our
combined fleets.”
Strategic and Financial Benefits:
- Addition of 234 highly-skilled,
tenured and professional drivers
- Fleet of 200 trucks (170 company
and 30 independent contractor) and 980 trailers
- Existing Baylor leadership
(including President Cari Baylor), drivers and non-driver
associates will remain in place, and we are retaining the Baylor
brand to ensure smooth integration and high driver retention
- Freight revenues mix of one-way dry
van (51%), expedited dry van (42%) and refrigerated (7%)
- Adds high-quality driver and
non-driver talent and increases Werner’s fleet size by 2.4%
- Buying power synergies are expected
through combined management of our two fleets
- Both Werner and Baylor have similar
cultures that are intensely focused on safety and superior customer
service
- Shared values of working with
winning customers with high expectations, establishing long-term
mutual service and revenue objectives, and delivering best-in-class
performance to stabilize volume and minimize churn
- Baylor will operate as a standalone
business unit within Werner, and their financial results will be
reported in Werner’s One-Way Truckload unit within Truckload
Transportation Services
Leathers continued, “Both Werner and Baylor
believe deeply that our professional drivers are the backbone of
our companies. Both companies were founded by their first driver.
We look forward to welcoming the Baylor team and working together
to create additional value for our customers and shareholders.”
“I have admired and respected Werner for a long
time as an industry leader. We are extremely excited to join the
Werner team and look forward to continued growth as we leverage the
strengths of Baylor and Werner to serve our existing and new
customers at even higher levels. We will stand by our customers and
continue to provide them with the superior service they expect from
Baylor. Aligning with Werner only expands our service capabilities.
Werner shares our passion for delivering value and continually
creating personal and professional opportunities for our elite
Baylor team,” said Cari Baylor, President of Baylor Trucking.
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 2021
revenues of $2.7 billion, an industry-leading modern truck and
trailer fleet, over 14,000 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 Baylor Trucking
FAB9, Inc., doing business as Baylor Trucking,
Inc., is located in Milan, Indiana. Baylor was founded in 1946 by
Chester Baylor, the grandfather of Baylor President, Cari Baylor,
who grew up in the trucking business and has led Baylor for the
last 7 years. Baylor was named carrier of the year by Walmart four
times, and in 2021 Baylor was named Diversity carrier of the year
for the second time.
Advisors
Koley Jessen P.C., L.L.O. served as legal
counsel to Werner Enterprises. Ice Miller LLP served as legal
counsel to Baylor Trucking.
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, 2021 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, Treasurerand
Chief Financial Officer(402) 894-3036
Source: Werner Enterprises, Inc.
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