Business
Werner Enterprises Expands and Diversifies its Logistics Capabilities with the Acquisition of ReedTMS Logistics
OMAHA, Neb., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s largest transportation and logistics companies,
About this update from Werner Enterprises, Inc.
[{"type":"text","content":"OMAHA, Neb., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s largest transportation and logistics companies, announced today it has signed a definitive agreement and closed on the acquisition of 100% of the stock of Reed Transport Services, Inc. and RTS-TMS, Inc., doing business as ReedTMS Logistics (“ReedTMS”). ReedTMS, founded in 1996 and based in Tampa, Florida, is a leading asset-light logistics provider and truckload carrier that offers a comprehensive suite of freight brokerage and truckload solutions to a diverse customer base. Summary of ReedTMS: Revenues of $372 million for the 12 months ended September 30, 2022, 90% freight brokerage and 10% truckingMore than 800 customers, with two-thirds of revenues in the attractive and stable food and beverage industries, minimal customer overlap with Werner and top 10 customers average eight years of tenure with ReedTMSFreight brokerage revenues are 65% contractual and 35% transactionalAn extensive freight brokerage network with 19,000 active carriers and 70,000 approved carriersA talented and experienced leadership team, drivers and non-driver associates will remain with the business, and Werner will retain the ReedTMS brandReedTMS provides superior customer service, which has enabled a 28% annual compound growth rate of revenues over the last five yearsWerner and ReedTMS both champion a culture to serve winning customers with excellence, establishing long-term mutual service and capacity objectives and delivering best-in-class performance to stabilize volume and minimize churnReedTMS will operate as a standalone business unit within Werner, and we will report their freight brokerage financial results in our Werner Logistics segment and their truckload financial results in the Dedicated business unit in our Truckload Transportation Services segment “We are thrilled to welcome the accomplished ReedTMS team to Werner. ReedTMS Logistics further strengthens our freight brokerage capabilities,” said Derek Leathers, Chairman, President and Chief Executive Officer. “ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals. This transaction continues to build upon our Werner DRIVE strategy and positions us for future profitable growth. We expect this acquisition to be accretive to ...