Werner Enterprises Expands and Diversifies its Logistics Capabilities with the Acquisition of ReedTMS Logistics
November 07 2022 - 8:00AM
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
100% of the stock of Reed Transport Services, Inc. and RTS-TMS,
Inc., doing business as ReedTMS Logistics (“ReedTMS”).
ReedTMS, founded in 1996 and based in Tampa,
Florida, is a leading asset-light logistics provider and truckload
carrier that offers a comprehensive suite of freight brokerage and
truckload solutions to a diverse customer base.
Summary of ReedTMS:
- Revenues of $372
million for the 12 months ended September 30, 2022, 90% freight
brokerage and 10% trucking
- More than 800 customers, with
two-thirds of revenues in the attractive and stable food and
beverage industries, minimal customer overlap with Werner and top
10 customers average eight years of tenure with ReedTMS
- Freight brokerage revenues are 65%
contractual and 35% transactional
- An extensive freight brokerage
network with 19,000 active carriers and 70,000 approved
carriers
- A talented and experienced
leadership team, drivers and non-driver associates will remain with
the business, and Werner will retain the ReedTMS brand
- ReedTMS provides superior customer
service, which has enabled a 28% annual compound growth rate of
revenues over the last five years
- Werner and ReedTMS both champion a
culture to serve winning customers with excellence, establishing
long-term mutual service and capacity objectives and delivering
best-in-class performance to stabilize volume and minimize
churn
- ReedTMS will operate as a
standalone business unit within Werner, and we will report their
freight brokerage financial results in our Werner Logistics segment
and their truckload financial results in the Dedicated business
unit in our Truckload Transportation Services segment
“We are thrilled to welcome the accomplished
ReedTMS team to Werner. ReedTMS Logistics further strengthens our
freight brokerage capabilities,” said Derek Leathers, Chairman,
President and Chief Executive Officer. “ReedTMS will elevate our
logistics portfolio with new customers, by expanding and
diversifying our industry verticals. This transaction continues to
build upon our Werner DRIVE strategy and positions us for future
profitable growth. We expect this acquisition to be accretive to
diluted earnings per share in year one.”
“We are excited to join the Werner team, who we
have always considered an industry leader,” said Jason Reed, CEO of
ReedTMS Logistics. “Werner will enable us to achieve key goals,
including creating broader opportunities for our associates,
expanding our service capabilities for our customers and helping us
continue our quest to leverage best in class technology solutions
for our associates, customers, suppliers and other
stakeholders.”
“We believe the cultural fit between ReedTMS and
Werner in terms of our people and our customers is a
differentiator. We look forward to jointly growing our combined
logistics business with Werner,” said Mark Reed, Jr., President of
ReedTMS Logistics. Conference Call Information
Werner Enterprises will conduct a conference
call to discuss the ReedTMS acquisition today at 1:00 p.m. CT. The
news release, live webcast of the conference call, and the
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 you are dialing in for the Werner
Enterprises’ call. A replay of the conference call will be
available on November 7, 2022, in the evening through December 7,
2022, by dialing (877) 344-7529 (domestic) or (412) 317-0088
(international) and using the access code 5565158. 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 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 ReedTMS Logistics
Reed Transport Services, Inc. and RTS-TMS, Inc.,
doing business as ReedTMS Logistics, is headquartered in Tampa,
Florida. ReedTMS was founded in 1996 by Mark Reed, Sr., the father
of CEO Jason Reed, and President Mark Reed, Jr. ReedTMS is a
leading asset-based third-party logistics and truckload provider
specializing in produce transportation across the U.S. Through
operating centers in Florida and Wisconsin and logistics branch
offices in Alabama, Ohio, Pennsylvania and Florida, ReedTMS
personnel provide superior service to their customers.
Legal Counsel
Koley Jessen P.C., L.L.O. served as legal
counsel to Werner Enterprises, and Akerman LLP served as legal
counsel to ReedTMS.
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.
Werner Enterprises (NASDAQ:WERN)
Historical Stock Chart
From May 2024 to Jun 2024
Werner Enterprises (NASDAQ:WERN)
Historical Stock Chart
From Jun 2023 to Jun 2024