Ryder System Inc. is acquiring Impact Fulfillment Services Holdings LLC, a packaging, manufacturing and contract warehousing services company with operations in 15 states.
Terms of the definitive agreement reached in the third quarter were not disclosed. IFS also specializes in display engineering, product launch, multi-channel and club store programs. Ryder expects to close the purchase in early November.
Miami-based Ryder is acquiring all of the company’s outstanding assets and will retain its approximately 1,000 employees. IFS President Rob LeBaron will join Ryder as vice president of contract manufacturing and packaging.
Ryder expects revenue growth of $250 million
The terms will be included in Ryder’s third-quarter filing with the Securities and Exchange Commission. Ryder expects to add $250 million in annual revenue, with the deal accretive to shareholders.
IFS specializes in contract packaging, contract manufacturing and warehousing. Its clients include some of the largest and best-known consumer packaged goods brands in the United States, including retail and healthcare.
Ryder acquires nine multi-client facilities and six dedicated facilities totaling just under 4 million square feet in Florida, Georgia, Illinois, North Carolina, Ohio, Pennsylvania, Texas, Utah and California.
“Strategy to accelerate growth in our supply chain business”
“The acquisition of IFS supports our strategy to accelerate growth in our supply chain by providing Ryder with new capabilities that are complementary to our existing suite of services,” said Steve Sensing, Ryder’s president of supply chain solutions. news Monday.
Ryder will initially bring packaging and co-manufacturing services to its CPG business, but sees opportunities in other industries.
IFS has built a blue-chip client base in packaging and co-production in both food and non-food products. It specializes in mixing and filling dry powder and viscous products.
“Ryder already serves the top 10 US food and beverage companies. And this acquisition will expand and strengthen our relationships with these customers while also attracting new customers in additional verticals, especially in retail, health and beauty,” said Darin Cooprider, Ryder’s senior vice president of CPG.
Opening doors to more industries
IFS customers will benefit from access to Ryder’s capabilities as a fully integrated port-to-door logistics provider, Cooprider said.
IFS’s LeBaron agreed.
“As we considered the next step in our growth strategy, it became clear that joining Ryder would open doors in nearly every industry segment while allowing our customer base to leverage Ryder’s comprehensive suite of services,” he said.
IFS founder Todd Porterfeld plans to retire after the merger.
“Looking forward, I want to make sure our employees are in a place where they can continue to grow and our customers are in the best possible hands,” he said. “I think Ryder is that place.”
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