Ryder acquires MXD Group in effort to expand E-commerce growth

Taking steps to further expand its e-commerce, omni-channel fulfillment, and last mile service offerings, freight transportation and logistics services provider Ryder System Inc. said today it has acquired all outstanding equity of MXD Group for roughly $120 million.

Based in Grand Rapids, Michigan, MXD, according to Ryder, is an e-commerce fulfillment provider with a national network of facilities that includes last mile services. Through this acquisition, Ryder said it has acquired 109 MXD e-commerce fulfillment facilities across the United States and Canada, which includes 21 MXD-operated cross dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities. Also included in the deal, said Ryder, are MDX’s proprietary order management and visibility technology, which features real-time tracking and a customer service portal for rapid response and resolution.

Two main areas in which Ryder benefits from acquiring MXD include:

• Ryder e-Commerce Fulfillment: with the additional 109 facilities, Ryder’s network now includes 121 e-commerce hubs covering more than 95% of the U.S. and Canada within a two-day delivery timeframe. The network can serve any industry, as it can handle big and bulky products as well as small and large parcels; and
• Ryder Last Mile:  A last mile solution for retailers and shippers of big and bulky products will include home delivery and white glove installation with multiple tiers of service and a network of carriers throughout the U.S. and Canada

Ryder also noted that with MXD now in the fold it is the second-largest last mile delivery provider of big and bulky goods.

“The acquisition of MXD is one of several strategic investments we are making to overcome the disruptions we are seeing in the market today and to position Ryder for future growth,” said Steve Sensing, Ryder president of Global Supply Chain Solutions, in an interview. “Due to increased customer demand, we are working to enhance our capabilities in e-commerce fulfillment. These newly acquired services, combined with Ryder’s deep engineering expertise, will position Ryder’s e-commerce fulfillment and last mile delivery services as the ultimate solution that increases speed to market to a broader geography and completes our capabilities around an integrated omnichannel end-to-end solution.”

When asked what MXD brings to the fold, Sensing explained that Ryder is constantly looking at strategic investments and identified this acquisition as an opportunity to expand its capabilities around e-commerce fulfillment by increasing its distribution footprint and speed to market with a two-day delivery timeframe.

“These are solutions that our customers are seeking, especially at a time when consumers are increasingly shifting to online buying, and brick and mortar retailers are being compelled to expand businesses online,” he said. “The acquisition also includes proprietary order management and visibility technology that features real-time tracking and a customer service portal for rapid response and resolution. This technology will serve as the ultimate tool for customers who are seeking greater shipment visibility and customer service.”