Ryder System, Inc. is buying Whiplash, a provider of omnichannel fulfillment and logistics services in the U.S., for approximately US$480 million in cash.
Based in City of Industry, Calif., Whiplash provides e-commerce and omnichannel fulfillment solutions to more than 250 companies. The company has 19 dedicated and multi-client warehouses covering nearly seven million square feet.
The transaction is expected to add approximately $480 million in gross revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022. Ryder and Whiplash expect to complete the transaction in late December 2021 or early January 2022, subject to regulatory approvals.
Ryder expects to integrate Whiplash’s facilities, operations, technology, and warehouse automation and robotics into its e-commerce fulfillment solution within the supply chain solutions business unit. It also plans to retain Whiplash’s executive team and workforce.
“The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business. It also expands our e-commerce and omnichannel fulfillment network and reflects our continued focus on technology and innovation,” says Robert Sanchez, chairman and chief executive officer for Ryder.
The acquisition will add to Ryder’s current e-commerce fulfillment network with new facilities in Chino, City of Industry, and Long Beach, California; Jacksonville, Florida; Savannah, Georgia; Newark, Secaucus, and Clifton, N.J.; Columbus, Ohio; Salt Lake City, Utah; and Sumner, Washington.
Additionally, the acquisition strengthens Ryder’s presence in key port operations, providing four-corner coverage of all major U.S. inbound gateways via the ports of Seattle/Tacoma, New York/New Jersey, Savannah, and Long Beach.
“With e-commerce sales continuing to hit record levels and omnichannel retailing becoming mainstream, we’re seeing a significant uptick in brands looking for more dynamic fulfillment services,” says Steve Sensing, president of global supply chain solutions for Ryder.
“Whiplash has built a proven model that meets today’s consumers where, when, and how they choose to engage with brands — whether that’s online from a mobile device or laptop, in-store, or a combination. We expect that our combined customers will benefit from that additional flexibility.”
With the expanded footprint following the acquisition, Ryder’s e-commerce and omnichannel fulfillment solution is expected to be able to deliver to 100 percent of the U.S. within two days and 60 percent of the U.S. within one day.