Ryder to Acquire Fulfillment Provider Whiplash in $480M Deal
December 13, 2021
Ryder System, Inc., which performs supply chain, transportation and fleet management operations, has announced it will acquire Whiplash, a national provider of omnichannel fulfillment and logistics services, for approximately $480 million in cash. The City of Industry, Calif.-based Whiplash provides e-commerce and omnichannel fulfillment solutions for more than 250 different brands. The company includes 19 dedicated and multi-client warehouses that total nearly 7 million square feet, and provide access to key port operations and gateway markets.
Ryder said the transaction is accretive to shareholders, and is expected to add about $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. The companies said they expect to complete the transaction in late December 2021 or early January 2022, subject to satisfaction of antitrust approvals and customary closing conditions.
“The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business, said Robert Sanchez, chairman and CEO at Ryder. It also expands our e-commerce and omnichannel fulfillment network and reflects our continued focus on technology and innovation. Whiplash’s best-in-class e-commerce platform and key geographic strongholds – coupled with Ryder’s industry-leading transportation logistics solutions, including our robust Ryder Last Mile delivery network for big-and-bulky goods – positions us to deliver incredible value for our customers who are looking for more advanced e-fulfillment solutions in today’s ever-changing landscape.”
Ryder said it 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. The company also plans to retain Whiplash’s executive team and workforce to execute the growth and customer solutions in the segment.
“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,” said Steve Sensing, president of global supply chain solutions at 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 as well as Ryder’s vast nationwide network, extensive technology suite, best-in-class warehouse management practices, and end-to-end transportation logistics solutions.”
The acquisition will add to Ryder’s current e-commerce fulfillment network with new facilities in Chino, Calif.; City of Industry, Calif.; Long Beach, Calif.; Jacksonville, Fla.; Savannah, Ga.; Newark, N.J.; Secaucus, N.J.; Clifton, N.J.; Columbus, Ohio; Salt Lake City, Utah; and Sumner, Washington. Ryder said that with the expanded footprint following the acquisition, its e-commerce and omnichannel fulfillment solution will be able to deliver to 100% of the U.S. within two days, and 60% of the U.S. within one day.
“This announcement signals a new accelerated phase of growth for Whiplash that will benefit o ur current customers and dramatically enhance our ability to scale and deliver innovation for digitally native brands and omnichannel retailers,” said Jeff Wolpov, CEO of Whiplash. “Ryder’s supply chain expertise, facility network, and last-mile transportation solutions are a perfect complement to the Whiplash e-commerce platform, and we’re excited to be part of the Ryder team.”
