Ryder System, one of the largest providers of last-mile delivery services for big and bulky goods, announced Tuesday that it has expanded its last-mile network, adding regional distribution hubs in the Nashville, Tennessee, and Boise, Idaho, areas.
The first facility, located outside downtown Nashville in neighboring Smyrna, opened in February. That location has 100,000 square feet of space with room for expansion, Ryder (NYSE: R) said. The second facility, just outside of Boise in Caldwell, opened earlier this month at 70,000 square feet. Both regions are among the 20 fastest-growing metro areas in the country.
In total, Ryder’s last-mile network comprises more than 100 distribution hubs. Those facilities provide two-day delivery services to 95% of the U.S., including Hawaii and Puerto Rico.
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“We made the decision to invest in the Nashville and Boise markets for this latest expansion of our last-mile delivery network because it aligns with our broader strategy to continually position our customers closer to their end consumers,” said Steve Sensing, president of supply chain solutions for Ryder. “With burgeoning populations and quick access to highway and rail networks, these two new markets increase speed to market, which is critical in today’s highly competitive environment and vital to our customers’ growth strategies.”
Ryder’s Last Mile offering includes four tiered delivery options. Customers can choose to have parcels delivered to their front doors, over the threshold of their residences or into rooms of their choice — or they can let their delivery person handle assembly, hookup and installation entirely through a white-glove delivery option.
Ryder first began to bolster its last-mile network in 2018, when it acquired last-mile carrier MXD Group for $120 million. That transaction also gave Ryder the keys to MXD’s network of 109 e-commerce fulfillment centers in the U.S. and Canada.
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Last October, Ryder acquired Midwest Warehouse & Distribution System and its 17 warehouses, nine of which are multiclient facilities. It then continued its streak of purchases in December when it bought Whiplash for $480 million, a transaction that the company said would allow it to reach 100% of the U.S. within two days.
Ryder’s business could be in for a shake-up, however. FreightWaves reported last week that the transportation provider is the subject of an “unsolicited” takeover offer from private equity firm HG Vora Capital Management.
According to a 13D filing this past Friday, HG Vora said it has a 9.9% share of Ryder. It offered to buy the rest of the company for $86 a share. As of Tuesday, Ryder’s stock is sitting at around $85 per share after gaining on last Friday’s news.
Analysts say a possible rationale for the takeover is that Ryder as a whole is worth less than the sum of its parts. They also point to the emergence of XPO, a spinoff of GXO Logistics (NYSE: GXO), as a potential headwind for the company.
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