Ryder System, Inc. announced it has entered into a definitive agreement to acquire all of the outstanding equity of Midwest Warehouse & Distribution System. Midwest, based in Woodridge, IL, provides warehousing, distribution and transportation solutions primarily for food, beverage and consumer packaged goods (CPG) companies. Midwest operates nine multi-client and eight dedicated-customer warehouses in five regions, primarily in the greater Chicago area—a key distribution hub—and to a lesser extent in New York, Pennsylvania, Tennessee and Texas. Midwest’s warehouse space totals approximately 7 million square feet and is supported by a company-owned fleet of trucks to service customers.
The transaction, which the parties expect to complete in early November, is expected to add approximately $135 million in annual revenue to Ryder’s supply chain solutions business segment in 2022 and provide incremental growth to Ryder’s earnings in 2022.
“In addition to having a significant presence in a key geography, Midwest has built a proven model for multi-client warehousing and distribution—a capability that we’ve been targeting for some time,” said Steve Sensing, President of Global Supply Chain Solutions for Ryder. “We currently serve nine out of the top 10 U.S. food and beverage companies, and this acquisition enables us to offer those customers—as well as additional blue-chip customers in Midwest’s portfolio—even more capacity and greater flexibility.”
Ryder will integrate Midwest’s facilities and operations into its CPG business, retain Midwest’s executive team and continue operations with the company’s workforce.
“Multi-client warehouse environments are a great entry point for new customers looking for a 3PL that can meet their needs now and in the future,” said Darin Cooprider, Senior Vice President of CPG for Ryder. “As our customers’ businesses grow and evolve, we can seamlessly transition them from multi-client warehouses to dedicated facilities. We offer dedicated transportation solutions for guaranteed capacity and a robust transportation management offering which can help mitigate market fluctuations. And, we offer proprietary technologies that set the standard for real-time visibility and collaboration across the end-to-end supply chain, so we can help our customers avoid costly delays and continually find efficiency gains. We do what we do best, so our customers can focus on what they do best.”
“Ryder stood out to us because our companies share the same culture focused on trust, safety, taking care of employees, and putting customers first,” says Ed Borkowski, President of Midwest Warehouse & Distribution System. “By combining our people, experience, and expertise, we are positioning our valued employees and customers for continued success within the rapidly evolving supply chain & logistics industry.”
Wofford Advisors LLC served as Ryder’s strategic advisor for the transaction and Blank Rome LLP acted as legal counsel. Republic Partners LLC and Freeborn & Peters LLP represented Midwest.