Ryder System, Inc. Rrecently completed the acquisition of MXD Group for $120 million. The acquired company was an e-commerce fulfillment provider, offering a worldwide network of facilities and last mile capabilities.
Benefits of the Buyout
Per the agreement, Ryder acquired 109 MXD e-commerce fulfillment facilities across the United States and Canada.
Following the MXD Group consolidation, Ryder now possess a proprietary order management and visibility technology, featuring real-time tracking and a customer service portal for quick response and solution.
The buyout uplifts Ryder to the second spot in last mile delivery of big and bulky goods. It also expands the company’s e-Commerce fulfillment network. Following the addition of 109 e-commerce facilities, Ryder’s network now consists of 121 e-commerce hubs, enclosing more than 95% of the United States and Canada and offering a two-day delivery timeframe. The buyout provides the acquirer with an opportunity to establish its foothold in the United States as well as Canada and places the company well for future growth.
The transaction is anticipated to be partly accretive to earnings in the current year. However, the company hopes to witness earnings growth from the integration in the coming years.