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Ryder System has acquired Cardinal Logistics, the transportation and supply chain provider announced on Thursday.
The addition of the North Carolina-based business will add 200 operating locations, 2,900 electric vehicles and 3,400 professional drivers, and Ryder will integrate the two companies together, according to a press release.
“The acquisition of Cardinal will further advance Ryder’s strategy to accelerate profitable growth in its proprietary business,” the press release said.
Ryder’s dedicated division generated 15% of the company’s total revenue of $12 billion in 2022, providing services that “enable our customers to mitigate the operational challenges associated with maintaining a private fleet of vehicles,” last annual report.
Cardinal primarily serves “complex route structures at distribution centers, suppliers and stores, as well as complementary freight brokerage services” for consumer packaged goods, grocery, building products, automotive and industrial companies, a press release said.
Cardinal founders Tom Hostetler and Vin McLoughlin, who started the business in 1997, will join Ryder as part of the move.
Ryder noted that the deal increases the scale and density of the network, and the company has worked to expand its e-commerce, omnichannel and supply chain capabilities over the years with acquisitions, including Dotcom Distribution and Whipping in 2022 as well as IFS Holdings, known as Impact Fulfillment Services, in 2023.
“Our e-commerce and last-mile services offer multi-channel delivery with two-day delivery to the entire US and one-day delivery to the majority of the US,” Ryder said in its annual report last year. “Our e-commerce and last-mile services are delivered through a network of over 158 locations strategically located throughout the US”
More details on the deal are expected during Ryder’s Q4 earnings call on February 14.