Trucking news: Ryder agrees to acquire Gordon Truck Leasing

Jeff Berman, Group News Editor -- Logistics Management, 8/7/2008

MIAMI—Global transportation and logistics services provider Ryder said this week it has reached an agreement to acquire the assets of Gordon Truck Leasing, a Philadelphia-based full-service truck leasing, commercial truck rental and fleet services company.

Financial terms of the acquisition are not available, but a Ryder statement indicated that the deal is expected to be completed later this month and is subject to customary closing conditions.

Under the terms of the acquisition, Ryder intends to acquire Gordon’s fleet of approximately 430 full service lease units, 45 rental units, and 35 held-for-sale units along with roughly 130 of Gordon’s contract customers currently served by five Philadelphia area locations. Gordon was established in 1978.

“Gordon Truck Leasing is a high quality and well-managed transportation service provider with a strong reputation in the metropolitan Philadelphia area,” said Ryder Chairman and Chief Executive Officer Greg Swienton in a statement. “We are pleased to be able to add new customers to our existing locations, as well as provide them with the additional services and solutions for which Ryder is recognized in the industry.”

This deal continues Ryder’s steady line of recent acquisitions. In May, it acquired Gator Leasing Inc., a Miami-based full-service truck leasing, commercial truck rental and fleet services provider. And in January, it acquired Lily Transportation Corp., a Needham, Mass.-based regional transportation service provider, and Pollock NationaLease, an Ontario-based full service trucking company, last October.

Stifel Nicolaus transportation analyst David Ross wrote in a research note that this acquisition will enable Ryder to expand its presence in the Mid-Atlantic region and continue the growth strategy of its full-service lease business.

Ross added that this acquisition is similar to recent deals Ryder has completed in recent years—including Lily, Pollock, and Gator—and is part of its growth strategy in its Fleet Management Solutions business.

“It is likely the company will keep at least some of Gordon's five facilities, while it will probably get some synergies by merging other business into existing Ryder facilities in the area,” commented Ross. “We would expect more of these small tuck-in deals to be announced, as the year progresses.”

Ryder spokespersons did not return calls to LM regarding the acquisition. But when acquisitions are announced but not finalized, Ryder does not issue comments outside of its statements, because it is still in the “due diligence” phase of the acquisition, and numbers and figures in the deal are subject to change until it is complete.