Ryder Acquires Cardinal Logistics

Ryder System expands its operations by acquiring Cardinal Logistics, enhancing its dedicated transportation services.

Ryder Acquires Cardinal Logistics
Image Source: Ryder System

Florida-based Ryder System takes a big step to expand its dedicated transportation services (DTS) by acquiring Cardinal Logistics. This move is seen as a strategic effort to strengthen Ryder's position in the market.

Key Financial Insights:

  • Ryder's DTS Revenue: In the third quarter of 2023, Ryder's DTS reported a total revenue of $448 million, slightly down from the previous year.
  • Cardinal Logistics' Performance: Cardinal Logistics, listed among the Top 100 For-Hire carriers, recorded a revenue of about $1.1 billion in 2022.

Integration Plans:
Ryder plans to integrate Cardinal’s operations, facilities, and equipment into its existing business segments, which include dedicated transportation, fleet management, and supply chain businesses. This integration aims to enhance Ryder's service offerings and market reach.

Impact on Ryder's Business Segments:
While Ryder operates across three divisions - dedicated transportation, fleet management, and supply chain solutions - the acquisition of Cardinal Logistics is primarily expected to bolster its dedicated business. This move is part of Ryder's broader strategy to focus on areas with potential for profitable growth.

Future Outlook:
Ryder anticipates that the acquisition will positively impact its earnings by 2025, following the completion of integration efforts and achieving synergies. The company emphasizes its commitment to enhancing its competitive position and improving overall risk management through this strategic acquisition.

Founders' Perspective:
Cardinal Logistics, founded in 1997 by Tom Hostetler and Vin McLoughlin, has its roots linked to Ryder, with both founders having started their logistics careers at Ryder.

The founders expressed confidence in Ryder's ability to carry forward their legacy, citing its people-first and customer-centric culture.

Source: FreightWaves

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