Ryder System (CCJ Top 250, No. 14), has agreed to acquire provider of omnichannel fulfillment and logistics services, Whiplash, for approximately $480 million in cash.
Based in City of Industry, California, Whiplash provides scalable e-commerce and omnichannel fulfillment solutions from 19 dedicated and multi-client warehouses that total nearly 7 million square feet and provide access to key port operations and gateway markets. The acquisition will add to Ryder’s current e-commerce fulfillment network with new facilities in Chino, Calif; City of Industry, Calif.; Long Beach, Calif.; Jacksonville, Fla.; Savannah, Ga.; Newark, N.J.; Secaucus, N.J.; Clifton, N.J.; Columbus, Ohio; Salt Lake City, Utah; and Sumner, Wash. Additionally, the acquisition strengthens Ryder’s presence in key port operations, providing four-corner coverage of all major U.S. inbound gateways via Seattle/Tacoma, New York/New Jersey, Savannah, and Long Beach.
Robert Sanchez, chairman and chief executive officer for Ryder, said the acquisition of Whiplash is consistent with the company's goal to accelerate growth in its higher-return supply chain business.
"It also expands our e-commerce and omnichannel fulfillment network and reflects our continued focus on technology and innovation,” he said, adding that Whiplash’s e-commerce platform and geographic strongholds, when coupled with Ryder’s transportation logistics solutions – including the Ryder Last Mile delivery network for big-and-bulky goods – "positions us to deliver incredible value for our customers who are looking for more advanced e-fulfillment solutions in today’s ever-changing landscape.”
Ryder expects to integrate Whiplash’s facilities, operations, technology and warehouse automation and robotics into its e-commerce fulfillment solution within the supply chain solutions business unit.
“With e-commerce sales continuing to hit record levels and omnichannel retailing becoming mainstream, we’re seeing a significant uptick in brands looking for more dynamic fulfillment services,” said Steve Sensing, president of global supply chain solutions for Ryder. “Whiplash has built a proven model that meets today’s consumers where, when and how they choose to engage with brands — whether that’s on-line from a mobile device or laptop, in-store or a combination. We expect that our combined customers will benefit from that additional flexibility as well as Ryder’s vast nationwide network, extensive technology suite, best-in-class warehouse management practices, and end-to-end transportation logistics solutions.”
With the expanded footprint following the acquisition, Ryder’s e-commerce and omnichannel fulfillment solution is expected to be able to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day.
