Ryder completes Scully acquisition
Ryder System has completed its previously announced acquisition of The Scully Cos., based in California.
Scully is a privately owned, regional provider of full-service lease, contract maintenance, commercial rental and dedicated contract carriage services.
Ryder said the acquisition is expected to add about $100 million in annualized operating revenue and be accretive to earnings in 2011. About 35 percent of Scully's revenue is related to the commercial truck leasing, maintenance, and rental business, and 65 percent is related to dedicated contract carriage business.
Scully's leasing, maintenance and rental services will now operate as part of Ryder's Fleet Management Solutions business segment and its dedicated contract carriage business will now become part of Ryder's Dedicated Contract Carriage business segment.
'This acquisition strengthens Ryder's leadership in the western United States, and increases our customer base in the retail industry for dedicated contract carriage services,' said Greg Swienton, Ryder chairman and chief executive officer, in a statement.
In the transaction, Ryder acquired Scully's fleet of about 1,800 full service lease vehicles, 300 commercial rental vehicles, and about 200 contract customers. Ryder acquired Scully's dedicated contract carriage business, including 17 customers served from 25 locations throughout the western United States.
Ryder also bought Scully's six service facilities, which include California locations in Fontana, Sacramento, City of Industry, Montebello, Hayward, and a location in Phoenix. Ryder will continue to operate Scully's Fontana and Hayward locations. Customers previously served by Scully's four facilities in Sacramento, Montebello, City of Industry, and Phoenix, will be consolidated into and served by Ryder's nearest existing locations, the company said.