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Ryder (R) to Buy Whiplash, Expand E-Commerce Fulfillment Network
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Ryder System (R - Free Report) recently entered into a definitive agreement to acquire omnichannel fulfillment and logistics service provider, Whiplash, for approximately $480 million in cash. The move is prudent given the pandemic-induced rise in demand for e-commerce.
The acquisition will expand Ryder’s e-commerce fulfillment network by adding Whiplash's 19 dedicated and multi-client warehouses totaling nearly seven million square feet, which provide access to key port operations and gateway markets.
Ryder’s chairman and CEO, Robert Sanchez, said, "The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business.” Whiplash’s facilities, operations, technology, and warehouse automation and robotics are expected to be integrated into Ryder’s e-commerce fulfillment solution within its supply chain solutions business unit. The company intends to retain Whiplash’s executive team and workforce.
The transaction is expected to add approximately $480 million to R’s gross revenues in the supply chain solutions business segment in 2022. It is anticipated to boost the company’s earnings in 2022, following completion of the acquisition this year-end or early next year, subject to customary closing conditions.
The buyout will expand Ryder’s footprint with new facilities in Chino, CA; City of Industry, CA; Long Beach, CA; Jacksonville, FL; Savannah, GA; Newark, NJ; Secaucus, NJ; Clifton, NJ; Columbus, OH; Salt Lake City, UT; and Sumner, WA. It also strengthens the company’s port presence in all four corners of the United States.
The acquisition is expected to help Ryder deliver to 100% of the United States within two days and 60% of the United States within one day.
Here are some other top-ranked stocks within the broader Transportation sector:
Expeditors International of Washington (EXPD - Free Report) sports a Zacks Rank #1. The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 29.1%.
Shares of Expeditors have appreciated more than 42% so far this year.
Schneider National (SNDR - Free Report) carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21%.
Shares of Schneider National have rallied more than 27% so far this year.
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.4%.
Shares of ArcBest have surged more than 100% so far this year.
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Ryder (R) to Buy Whiplash, Expand E-Commerce Fulfillment Network
Ryder System (R - Free Report) recently entered into a definitive agreement to acquire omnichannel fulfillment and logistics service provider, Whiplash, for approximately $480 million in cash. The move is prudent given the pandemic-induced rise in demand for e-commerce.
The acquisition will expand Ryder’s e-commerce fulfillment network by adding Whiplash's 19 dedicated and multi-client warehouses totaling nearly seven million square feet, which provide access to key port operations and gateway markets.
Ryder’s chairman and CEO, Robert Sanchez, said, "The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business.” Whiplash’s facilities, operations, technology, and warehouse automation and robotics are expected to be integrated into Ryder’s e-commerce fulfillment solution within its supply chain solutions business unit. The company intends to retain Whiplash’s executive team and workforce.
Ryder System, Inc. Price
Ryder System, Inc. price | Ryder System, Inc. Quote
The transaction is expected to add approximately $480 million to R’s gross revenues in the supply chain solutions business segment in 2022. It is anticipated to boost the company’s earnings in 2022, following completion of the acquisition this year-end or early next year, subject to customary closing conditions.
The buyout will expand Ryder’s footprint with new facilities in Chino, CA; City of Industry, CA; Long Beach, CA; Jacksonville, FL; Savannah, GA; Newark, NJ; Secaucus, NJ; Clifton, NJ; Columbus, OH; Salt Lake City, UT; and Sumner, WA. It also strengthens the company’s port presence in all four corners of the United States.
The acquisition is expected to help Ryder deliver to 100% of the United States within two days and 60% of the United States within one day.
Zacks Rank & Other Key Picks
Ryder sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some other top-ranked stocks within the broader Transportation sector:
Expeditors International of Washington (EXPD - Free Report) sports a Zacks Rank #1. The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 29.1%.
Shares of Expeditors have appreciated more than 42% so far this year.
Schneider National (SNDR - Free Report) carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21%.
Shares of Schneider National have rallied more than 27% so far this year.
ArcBest Corporation (ARCB - Free Report) flaunts a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 27.4%.
Shares of ArcBest have surged more than 100% so far this year.