Ryder buys logistics firm from grocer
Ryder System signed an agreement on Wednesday to acquire Holland, Mich.-based Total Logistic Control (TLC), a subsidiary of national grocer SUPERVALU.
TLC is a provider of supply chain services to food, beverage, and consumer packaged goods manufacturers in the United States.
Miami-based Ryder said it will buy TLC for cash under a stock purchase agreement. The acquisition is expected to add about $250 million in annual revenue to Ryder's Supply Chain Solutions business segment. Ryder said the acquisition should close on Dec. 31.
'This acquisition expands our Supply Chain Solutions offering with firmly established, comprehensive food, beverage and CPG capabilities, to complement our suite of automotive, high-tech, industrial and retail groups,” said Ryder Chairman and Chief Executive Officer Greg Swienton in a statement. “Additionally, the acquisition serves as an effective use of available financial leverage and is consistent with our direction for Ryder's long-term leverage targets.'
TLC operates 34 facilities comprising 10.6 million square feet of dry and temperature-controlled warehousing across 13 states. Ryder said TLC's management and 2,500 employees are expected to continue in their existing roles.