Ryder System Inc. announced it has completed the previously announced acquisition of Total Logistic Control, a Holland, Mich.-based provider of supply chain solutions to food, beverage and consumer packaged goods (CPG) manufacturers with significant supply chains in the United States.
The stock acquisition, completed on Dec. 31 at a price of about $200 million, is expected to add about $250 million in annual revenue to Ryder’s Supply Chain Solutions business segment and be accretive to Ryder’s earnings in 2011. Peter Westermann, former TLC president and chief executive officer, and members of the entire TLC organization will continue to work and serve clients in similar roles as part of Ryder’s Supply Chain Solutions business segment. The TLC business now will operate as Ryder Supply Chain Solutions’ consumer packaged goods industry group.
“The completion of this acquisition immediately strengthens the breadth and depth of our Supply Chain Solutions offering,” says Greg Swienton, Ryder chairman and CEO. “TLC has all the elements to help us accelerate our capabilities and growth prospects in a high-potential industry sector that we have been targeting for expansion. We are pleased to be able to utilize Ryder’s solid financial position and available leverage to make this important investment in our future.”
TLC provides clients a broad suite of end-to-end services, including distribution management, contract packaging services and solutions engineering. TLC’s clients consist of local, regional, national and international firms engaged in food and beverage manufacturing, consumer and wholesale distribution. TLC operates 34 facilities comprising 10.6 million square feet of dry and temperature-controlled warehousing across 13 states.
“We’re excited to continue serving our clients with the strengthened resources and additional capabilities that Ryder will bring,” Westermann says. “As part of Ryder, our team looks forward to delivering even more value to our clients, including lean principles, advanced logistical engineering, continuous improvement and leading dedicated contract carriage and transportation management services that will help strengthen our existing clients’ performance. Together, we can now go to market with a powerful new integrated resource to serve a wide range of food, beverage and consumer packaged goods businesses that are looking to drive continuously higher efficiency into their operations.”