Subscribe to our free, weekly email newsletter!


Ryder preps to acquire The Scully Companies Inc.

By Jeff Berman, Group News Editor
December 21, 2010

Freight transportation and logistics services provider Ryder System recently announced it has reached an agreement to acquire the full service lease, contract maintenance, commercial rental and dedicated contract carriage businesses of Fontana, California-based The Scully Companies Inc.

Financial terms of the acquisition were not disclosed, but Ryder officials said that it is expected to be finalized in late January.

Ryder officials said the company will acquire Scully’s fleet management business consisting of approximately 1,800 full service lease units and 300 rental vehicles, and approximately 200 contract customers primarily served from its six service facilities. Scully’s five California-based service facilities are in Fontana, Sacramento, City of Industry,Montebello, Hayward, along with a location in Phoenix, Ariz. And Scully’s dedicated contract carriage business, which Ryder is also acquiring, is comprised of
customers served from 25 locations throughout the western United States.

A Ryder spokesperson told LM there were multiple drivers for making this deal.

When asked how long Ryder has been looking to expand its FMS presence out West, the spokesperson said it is always looking to expand and grow its FMS business in all geographies, adding that “tuck in” acquisitions like this one are an efficient way for Ryder to leverage existing capacity, add selective new locations to strengthen its market
position, and add strong customers and operations management to its, which have been and will continue to be an important component of its growth strategy.

“The biggest competitive advantages [of this deal] relate to adding a strong customer base, additional infrastructure in key geographies (both sides of the business),
and strong management talent with specific insight and experience in these
markets,” said the spokesperson.

Robert W. Baird & Co. analyst Jon Langenfeld wrote in a research note that acquiring Scully expands Ryder’s footprint in the western U.S. and its full service fleet, which grew by an average of 1.4 percent annually during the previous cycle and contracted 8 percent from the peak during the first quarter of 2009, by 2 percent. He added that these types of small tuck-in lease fleet acquisitions can support Ryder’s ability to return to previous peal fleet size during the upcoming cycle.

This acquisition follows a previous announcement in which Ryder announced its plans to acquire Total Logistic Control, a subsidiary of SUPERVALU and a provider of supply chain services for shippers in the food, beverage, and consumer packaged goods sectors.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA