Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns show up across WERNER ENTERPRISES's deal book — what the team buys, how it pays, and how it integrates. The patterns are the throughline; the deals below are the evidence.
4 acquisitions. Each entry carries the deal value, financing structure, target revenue, executive commentary, and the original SEC filing — the evidence behind the patterns above.
Werner signed a definitive agreement and closed on the acquisition of an 80% equity ownership stake in ECM Transport Group for a purchase price of $142.4 million, retaining an exclusive option to buy the remaining 20% after five years. ECM consists of ECM Transport and Motor Carrier Services of Pennsylvania, elite regional truckload carriers that operate nearly 500 trucks and 2,000 trailers across a network of 8 terminals and 18 drop yard facilities in the Mid-Atlantic, Ohio and Northeast. ECM achieved 2020 revenues of $108 million with an operating margin of 19.8%. $142.4 million for an 80% equity ownership stake (with an exclusive option to acquire the remaining 20% after five years).
The addition of ECM's skilled drivers, non-driver associates and terminal network strengthens our portfolio by adding short-haul expertise in a segment in which consumer demand and supply chain needs are growing. This transaction delivers on our '5 Ts + S' strategy and will position us for further growth as we capitalize on positive market dynamics for the remainder of 2021 and beyond.Derek Leathers — Chairman, President and Chief Executive Officer, Werner Enterprises
Werner signed a definitive agreement and closed on the acquisition of 100% of the equity interests in NEHDS Logistics, LLC, based in Monroe, Connecticut, for a purchase price of $64 million including a $4 million earnout. NEHDS is a final mile residential delivery provider operating a fleet of over 400 delivery trucks primarily in the Northeast and Midwest U.S., delivering big and bulky products (primarily furniture and appliances) using 2-person delivery teams through a network of 19 cross-dock, warehouse and customer facilities. NEHDS achieved annual revenues of $71.4 million for the twelve months ended September 2021 with a three-year average revenue growth rate of 27%. $64 million (including a $4 million earnout).
The addition of the NEHDS operations, management team, talented staff and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program. The combination of award winning service that NEHDS provides to its clients, along with the comprehensive portfolio of trucking capability, final mile logistics services and technology will bring the Werner and NEHDS customer base many advantages.Derek Leathers — Chairman, President and Chief Executive Officer, Werner Enterprises
Werner signed a definitive agreement and closed on the acquisition of FAB9, Inc., doing business as Baylor Trucking, Inc. Founded in 1946 and based in Milan, Indiana, Baylor is a premier truckload carrier operating 200 trucks (170 company and 30 independent contractor) and 980 trailers across the east central and south central U.S. through a network of two terminals. Baylor's freight revenue mix is one-way dry van (51%), expedited dry van (42%) and refrigerated (7%). Baylor achieved revenues of $81.5 million for the twelve months ended August 31, 2022.
Baylor, with its highly-skilled professional drivers and non-driver associates, further strengthens our portfolio with their exceptional service and stellar reputation. I have known Cari Baylor for many years and I have tremendous respect for what Cari, her family and her leadership team have created at Baylor. This acquisition delivers on our Werner DRIVE strategy and will position us for further growth.Derek Leathers — Chairman, President and Chief Executive Officer, Werner Enterprises
I have admired and respected Werner for a long time as an industry leader. We are extremely excited to join the Werner team and look forward to continued growth as we leverage the strengths of Baylor and Werner to serve our existing and new customers at even higher levels.Cari Baylor — President, Baylor Trucking
Werner signed a definitive agreement and closed on the acquisition of 100% of the stock of Reed Transport Services, Inc. and RTS-TMS, Inc., doing business as ReedTMS Logistics. Founded in 1996 and based in Tampa, Florida, ReedTMS is a leading asset-light logistics provider and truckload carrier offering freight brokerage and truckload solutions to a diverse customer base. ReedTMS generated revenues of $372 million for the twelve months ended September 30, 2022 (90% freight brokerage, 10% trucking), serving more than 800 customers with two-thirds of revenue in the food and beverage industries, an extensive brokerage network of 19,000 active and 70,000 approved carriers, and a 28% revenue CAGR over the prior five years.
We are thrilled to welcome the accomplished ReedTMS team to Werner. ReedTMS Logistics further strengthens our freight brokerage capabilities. ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals. This transaction continues to build upon our Werner DRIVE strategy and positions us for future profitable growth.Derek Leathers — Chairman, President and Chief Executive Officer, Werner Enterprises
We are excited to join the Werner team, who we have always considered an industry leader. Werner will enable us to achieve key goals, including creating broader opportunities for our associates, expanding our service capabilities for our customers and helping us continue our quest to leverage best in class technology solutions.Jason Reed — CEO, ReedTMS Logistics