Trucking news: Ryder completes acquisition of Gordon Truck Leasing

Jeff Berman, Group News Editor -- Logistics Management, 9/4/2008

MIAMI—Global transportation and logistics services provider Ryder said this week it has officially completed its acquisition of all the assets of Philadelphia-based Gordon Truck Leasing, a full-service truck leasing, commercial truck rental and fleet services company.

Ryder announced last month that it reached an agreement to acquire Gordon. Financial terms of the transaction were not made available, but Ryder said that it expects the acquisition of Gordon to add roughly $11 million in annualized operating revenue to its Fleet Management Solutions business unit. It also said that it anticipates future earnings improvement due to synergies and operational improvements within the combined companies.

Under of the transaction, Ryder has acquired Gordon’s fleet of approximately 430 full service lease units, 45 rental units, and 35 held-for-sale units that serve 130 contract customers. Ryder said it will continue to operate Gordon’s primary multi-customer maintenance location in Philadelphia and three single-customer maintenance locations in Bensalem, Pa., Beverly, N.J., and Philadelphia, with customers that were previously served by Gordon in the remaining two overlapping facilities to be consolidated into and served by Ryder’s closest locations.

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 last month 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.

“This acquisition will further strengthen Ryder’s leadership position in Philadelphia, and will help contribute to the growth of our Fleet Management Solutions business,” said Ryder Chairman and Chief Executive Officer Greg Swienton in a statement. “We look forward to welcoming Gordon’s customers to Ryder and enhancing our ability to serve new customers in this important market.”

Ryder officials were unavailable for additional comments on this acquisition.