Ryder System announced today, Jan. 14, the completion of its previously announced acquisition of substantially all the assets of the Full Service Truck Leasing, Commercial Truck Rental and Contract Maintenance businesses of Lily Transportation Corp., a Northeast U.S. regional transportation services company based in Needham, Mass.
The acquisition, terms of which were not announced, is expected to add about $30 million in annualized revenue to Ryder’s Fleet Management Solutions business unit. Ryder anticipates the acquisition will be immediately accretive to earnings due to synergies and operational improvements from the consolidated businesses.
In the transaction, Ryder acquired Lily’s fleet of about 1,500 full-service lease units serving 240 contract customers. Ryder also acquired about 80 commercial rental units. Ryder acquired three of Lily’s 11 multicustomer operating locations (in Roxbury, Mass; Newark, N.J.; and Concord, N.H.), as well as three additional single-customer maintenance locations (in Carteret, N.J.; Boston; and Woodbridge, N.J.). Customers previously served by Lily in the remaining eight overlapping facilities will be consolidated into and served by Ryder’s nearest existing locations. The combined network will operate under the Ryder name.
“Lily has been a well-managed company with a strong reputation in the Northeast U.S.,” says Greg Swienton, chairman and chief executive officer of Miami-based Ryder. “We are pleased to be able to strengthen our network and add new customers to our existing locations. We will also be able to provide these new clients with additional resources and increased product offerings, including insurance and supply chain solutions, which will help them grow and compete in today’s marketplace.”
