Werner Enterprises announced Wednesday that it has acquired dedicated carrier FirstFleet for $245 million in cash. The deal adds over $615 million in annual revenue and more than 2,400 tractors to Werner’s existing dedicated fleet, making Werner the fifth-largest dedicated provider in the U.S.
Werner’s (NASDAQ: WERN) existing dedicated fleet includes 4,865 units, which generated last 12 months’ revenue of $1.15 billion. Werner generates nearly $3 billion in consolidated annual revenue.
Murfreesboro, Tennessee-based FirstFleet also has a fleet of 11,000 trailers and 37 facilities. The carrier’s customer list mostly includes grocery, baked goods and packaging companies.
“By uniting FirstFleet’s expertise in complementary new verticals with our resources and nearly 5,000 Dedicated trucks, we will improve our competitive position and accelerate profitable growth,” said Derek Leathers, Werner’s chairman and CEO. … “Together, we are better positioned to drive tech-enabled solutions and deliver lasting value for our customers, drivers and shareholders.”
As part of the deal, Werner will acquire FirstFleet and its owned real estate (11 properties valued at $37.8 million) for approximately $282.8 million.
Werner has identified $18 million in annual synergies. The acquisition is expected to be immediately accretive to earnings per share and free cash flow.
Werner plans to keep the majority of FirstFleet’s management team, which will continue to operate at the Tennessee headquarters.
“Our team has long admired Werner’s leadership, and we strongly believe this transaction is an excellent opportunity to leverage best-in-class technology and deliver significant value to all our stakeholders,” said Paul Wilson, FirstFleet co-owner.
Wofford Advisors advised Werner on the deal, with Wells Fargo and TD Securities providing additional financial advisory support. Raymond James served as FirstFleet’s lead adviser. Brentwood Capital Advisors also advised FirstFleet.
Werner will host a call at 10:30 a.m. EST on Wednesday to discuss the deal.
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