MIAMI – Ryder System, Inc. has acquired all outstanding equity of MXD Group, an e-commerce fulfillment provider with a network of facilities across the U.S., including last-mile capabilities. The acquisition was completed on April 2, 2018, at a price of approximately US$120 million.
Ryder has acquired 109 MXD e-commerce fulfillment facilities across the U.S. and Canada, including 21 MXD-operated cross-dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities. The acquisition also includes proprietary order management and visibility technology, which features real-time tracking and a customer service portal for rapid response and resolution.
This significantly expands Ryder’s omni-channel fulfillment capabilities in two key areas:
Ryder e-Commerce Fulfillment – With the additional 109 facilities, Ryder’s network now includes 121 e-commerce hubs covering more than 95 percent of the U.S. and Canada within a two-day delivery timeframe. The network can serve any industry, as it can handle big and bulky products as well as small and large parcels.
Ryder Last Mile – A last mile solution for retailers and shippers of big and bulky products will include home delivery and white glove installation with multiple tiers of service and a network of carriers throughout the U.S. and Canada.
“As many industries continue to be disrupted by the growth of e-commerce, Ryder remains at the forefront of helping our customers find new solutions,” said Robert Sanchez, Ryder chairman and CEO.
“This acquisition will enable many of the businesses we serve to better meet their customers’ demands, which are constantly and rapidly changing amid a heightened e-commerce era. The acquisition of MXD is one of several strategic investments we are making to overcome the disruptions we are seeing in the market today and to position Ryder for future growth.”
“This acquisition provides Ryder the opportunity to tap into an established network in the U.S. and Canada serving manufacturers, retailers, and their customers, who have come to expect rapid deliveries,” said Steve Sensing, Ryder president of global supply chain solutions.
“E-fulfillment has become more critical to our customers than ever before, and with this new, expanded footprint, we’ll be better positioned to lead the charge in delivering a complete turnkey solution that not only includes warehousing, distribution, and transportation management, but also home delivery and white glove installation.”
The acquisition is expected to be nominally accretive to earnings in 2018. Ryder anticipates earnings growth in future years to come from introducing these services to its extensive current customer base and leveraging its sales and marketing capabilities to attract new customers.
Operating more than 207 facilities with 50 million square feet of warehouse space, Ryder currently provides comprehensive logistics and supply chain management solutions to companies with operations primarily in the U.S., Canada, Mexico, as well as contracts with more than 3,100 carriers in all modes of transportation in the markets it serves.