Ryder System, Inc., a frontrunner in the supply chain, dedicated transportation, and fleet management solutions, has completed the acquisition of Cardinal Logistics (Cardinal). This strategic move not only fuels growth but also enhances Ryder’s position as a premier customized dedicated contract carrier in North America. Headquartered in Concord, N.C., Cardinal specializes in offering dedicated fleets and skilled drivers for intricate route structures connecting distribution centers, suppliers, and stores. Additionally, Cardinal provides complementary freight brokerage services, last-mile delivery, and contract logistics services, with a primary focus on serving sectors such as consumer packaged goods, omnichannel, grocery, building products, automotive, and industrial verticals.
Ryder System, Inc. (NYSE: R) is set to significantly boost its dedicated business with the recent acquisition of Cardinal Logistics, marking a pivotal step in accelerating profitable growth. The move is anticipated to bring about synergies that will not only benefit Ryder and Cardinal but also enhance services for their customers. Ryder’s comprehensive integration plan encompasses the assimilation of Cardinal’s operations, facilities, and equipment into its dedicated transportation, fleet management, and supply chain sectors. The transaction is projected to demonstrate accretive effects by 2025, following the realization of synergies and the completion of integration efforts.
Steve W. Martin, Senior Vice President of Dedicated Transportation for Ryder, highlights the strategic advantages of this union. He notes, “With complementary contractual services in many shared industries, we gain greater economies of scale, providing enhanced flexibility for transportation networks, especially in the face of seasonality and fluctuating demand. Coupled with our end-to-end visibility and collaboration technology, RyderShare™, we can deliver significant value for customers seeking dynamic and resilient transportation solutions.”
To facilitate a seamless transition, founders Tom Hostetler and Vin McLoughlin, both of whom spent their formative years at Ryder, will be joining the company. Hostetler, CEO at Cardinal, expresses the purpose behind choosing Ryder, citing the impactful company culture: “We chose Ryder to continue our legacy because of the company culture. We experienced firsthand Ryder’s people-first, customer-centric approach, and that had an impact on us as we built our own company.”
Vin McLoughlin, Chairman of the Board for Cardinal, adds, “We care deeply about our people and customers, many of whom have been with us for decades. We also know Ryder. So, we know our people will have expanded opportunities in a larger, well-diversified company, and our customers will have access to an even greater breadth of products, services, and technology to support their continued growth. We’re excited for the future, knowing that our customers and employees are in the best possible hands with Ryder.”
Legal counsel for the transaction was provided by Greenberg Traurig LLP for Ryder, while William Blair LLC and McDermott Will & Emery LLP represented Cardinal.
Ryder plans to delve deeper into the specifics of the acquisition during its fourth-quarter conference call scheduled for Wednesday, February 14, 2024. Stay tuned for more insights into this transformative development.
About Ryder System, Inc.
Ryder System, Inc. (NYSE: R) is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including warehousing and distribution, e-commerce fulfillment, last-mile delivery, managed transportation, professional drivers, freight brokerage, full-service leasing, maintenance, commercial truck rental, and used vehicle sales to some of the world’s most recognized brands. Ryder provides services throughout the United States, Mexico, and Canada. In addition, Ryder manages nearly 260,000 commercial vehicles and operates approximately 300 warehouses encompassing more than 95 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmental stewardship, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com.