Werner Enterprises, a transportation and logistics management provider, acquired First Enterprises (FirstFleet) for $245 million , consolidating its position as the fifth largest dedicated transportation company in the United States.
This purchase will provide the company with 2,400 tractor-trailers, 11,000 trailers, and 37 strategically located properties near 130 customer sales points across the country.
Werner will also separately acquire real estate properties for approximately $282.8 million. The assets include 11 properties valued at $37.8 million .
“We have found a strong cultural affinity with a shared commitment to safety, service, and innovation. Together, we are better positioned to drive technology-enabled solutions and deliver lasting value to our customers, operators, and shareholders,” said Derek Leathers, president and CEO of Werner.
FirstFleet, a private company dedicated to road transport , has shown sustained growth for more than four decades and has top-tier clients under multi-year contracts.
It also reports over $615 million in annual revenue and consistent operating income margins, so it is estimated to generate greater earnings growth for Werner during the first two years, thanks to the realization of annual synergies of approximately $18 million; the transaction is also expected to increase free cash flow.
This combination aims to increase Werner’s revenue by approximately 50% from FirstFleet’s dedicated transport service, as it will increase its market share in other markets.
Werner plans to retain most of FirstFleet’s management and keep its headquarters in Murfreesboro, Tennessee .
Currently, Werner offers full freight transportation and logistics services to customers in the United States, Mexico, and Canada, while FirstFleet has operations throughout the United States.
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