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4/3/2018 Ryder System Inc. has acquired an e-commerce logistics company, positioning the Miami-based Fortune 500 company to become the second-largest last-mile delivery provider of bulky goods in the U.S. and Canada.
The $120 million acquisition of Ohio-based MXD Group, announced Tuesday, is just the latest development for Ryder (NYSE: R), which in recent months has launched a number of initiatives to build upon its core business of commercial fleet management and supply chain solutions.
The company announced in March the launch of a peer-to-peer platform for commercial vehicles, just weeks after closing a deal to supply electric-powered delivery trucks to office supplies giant W.B. Mason.
By buying 109 MXD e-commerce fulfillment facilities in the U.S. and Canada, Ryder expands its fulfillment capabilities in two key areas: e-commerce and last-mile shipping.
The company's network for shipping online purchases now covers more than 95 percent of the U.S. and Canada within a two-day delivery timeframe, while expanded last-mile capabilities enable Ryder to service short-distance deliveries for retailers delivering large items, such as home appliances or furniture.
"This acquisition provides Ryder the opportunity to tap into an established network in the U.S. and Canada serving manufacturers, retailers and their customers, who have come to expect rapid deliveries," said Steve Sensing, Ryder president of global supply chain solutions. "With this new, expanded footprint, we'll be better positioned to lead the charge in delivering a complete turnkey solution that not only includes warehousing, distribution and transportation management, but also home delivery and white-glove installation."
The MXD acquisition is expected to be "nominally" accretive to Ryder earnings in 2018, though the company "anticipates earnings growth in future years" as a result of the transaction and expanded service offerings.
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