Ryder to acquire supply chain solutions provider

Ryder System, a leader in supply chain, warehousing and transportation management solutions, has signed an agreement to acquire Holland, Michigan-based Total Logistic Control (TLC), an independently run, wholly owned subsidiary of SUPERVALU, reported Marketwire.

TLC is a leading provider of comprehensive supply chain solutions to food, beverage, and consumer packaged goods (CPG) manufacturers with significant supply chains in the US.

Ryder will acquire TLC for cash under a stock purchase agreement. The acquisition is expected to add approximately US$250 million in annual revenue to Ryder's Supply Chain Solutions business segment.

The acquisition is anticipated to be accretive to Ryder's earnings per share in 2011, excluding one-time transaction costs. Subject to closing conditions and regulatory approvals, the acquisition is expected to close on December 31, 2010.

"Total Logistic Control is a well-known and highly regarded supply chain solutions provider in the demanding industry sectors that it serves. The company has a client-focused management team, operational expertise, and strong, deeply established relationships with blue chip Fortune 1000 clients operating in food, beverage and CPG, which are high-potential industry sectors that Ryder's Supply Chain Solutions business segment has targeted for growth," said Ryder chairman and CEO Greg Swienton.

Ryder's president of global supply chain solutions John Williford said, "This strategic acquisition is an exact fit with our strategy of developing a leading CPG capability and strengthening our focus in key vertical industry sectors. By bringing the TLC organisation and operations over to Ryder intact, we are able to immediately deliver best in class supply chain solutions to a broad range of new and existing food, beverage and CPG clients."
(Source:www.cargonewsasia.com)