Ryder System Inc, the Miami FL-based provider of transportation and supply chain management systems, has completed its acquisition of substantially all the assets of Des Moines IA-based Ruan Leasing Co, a privately owned commercial truck leasing, rental, and contract maintenance company. The acquisition became effective March 1, 2004.
The purchase price was about $145 million in cash, subject to customary post-closing adjustments. This acquisition is expected to add approximately $125 million in annualized revenue (which includes $25 million in fuel revenue) and be accretive to earnings in 2004.
In the transaction, Ryder acquired Ruan's fleet of more than 6,400 vehicles, 37 of its 111 service locations, and more than 500 customers. Ryder also acquired full-service contract maintenance agreements covering some 1,700 vehicles. The supply chain, logistics, and dedicated contract carriage businesses of Ruan Transportation Management Systems were not included in the transaction.
The combined network will operate under the Ryder name.