Werner Enterprises announced Monday the acquisition of Indiana-based truckload carrier Baylor Trucking. Financial terms of the transaction were not provided but a news release outlining the deal showed Baylor generated $81.5 million in revenue for the 12 months ended Aug. 31.
Baylor is a 75-year-old company operating 200 trucks, 980 trailers and two terminals throughout the eastern and southern parts of the central U.S. The carrier’s 234 drivers haul mostly dry van freight through one-way and expedited offerings.
Baylor’s leadership team and non-driving associates are expected to remain in place and will continue to operate as a stand-alone unit within Omaha, Nebraska-based Werner’s one-way segment.
The deal is expected to be accretive to Werner’s (NASDAQ: WERN) earnings in the first year. Werner generated $2.7 billion in revenue last year with a fleet of 8,400 trucks and 26,000 trailers.
“Baylor, with its highly-skilled professional drivers and non-driver associates, further strengthens our portfolio with their exceptional service and stellar reputation,” said Derek Leathers, Werner’s chairman, president and CEO. “We expect this transaction to be accretive in year one and anticipate buying power synergies through integrated management of our combined fleets.”
|Acquisition price||not disclosed|
|Baylor’s revenue run rate||$81.5M|
|Werner’s revenue run rate||$2.7B|
|Expected synergies||combining fleet management, procurement savings|
|Earnings expectations||accretive in year one|
|Recent acquisitions by Werner||ECM Transport Group, Nehds Logistics|
Carriers have been using M&A to solve for capacity needs given production challenges at the OEMs. Throughout the pandemic, heavy-truck makers have struggled to source parts, components and labor.
After not making any acquisitions in its first 65 years, this is the third fleet Werner has acquired since last summer. In July of 2021 it acquired a majority stake in Pennsylvania-based ECM Transport for $142 million. Last November, it bought Connecticut-based final-mile provider Nehds Logistics for $64 million.
Those deals added roughly 900 trucks and 2,000 trailers to Werner’s network.
“We will stand by our customers and continue to provide them with the superior service they expect from Baylor,” Cari Baylor, president of Baylor Trucking, stated. “Aligning with Werner only expands our service capabilities. Werner shares our passion for delivering value and continually creating personal and professional opportunities for our elite Baylor team.”
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