On Monday, Ryder System, Inc. announced it had entered into an agreement to acquire Impact Fulfillment Services, or IFS Holdings, LLC.
The acquisition would see the leader in supply chain, dedicated transportation and fleet management solutions, acquire a contract packaging, contract manufacturing and warehousing leader. Ryder will acquire 15 operations across Florida, Georgia, Illinois, North Carolina, Ohio, Pennsylvania, Texas, Utah, and California.
“The acquisition of IFS supports our strategy to accelerate growth in our supply chain business, providing Ryder with new capabilities that are complementary to our existing suite of services,” says Steve Sensing, president of supply chain solutions for Ryder. “Initially, the co-packaging and co-manufacturing services will roll into our CPG vertical; however, we see considerable opportunity to leverage these new capabilities across other industry verticals.”
The transaction is expected to add $250 million in total annual revenue to Ryder’s supply chain solutions business segment. Once antitrust approvals and closing conditions are met, the companies expect the transaction to be complete in early November 2023.
“Ryder already serves the top 10 U.S. food and beverage companies, and this acquisition will expand and strengthen our relationships with those customers while also attracting new customers in additional verticals, especially in retail, health, and beauty,” says Darin Cooprider, senior vice president of CPG for Ryder. “And IFS’ customer base will benefit from access to Ryder’s capabilities as a fully integrated port-to-door logistics provider.”
Ryder officials said the company will integrate the IFS facilities and operations, including nine multiclient and six dedicated customer operations, into its supply chain solutions business. Ryder said it plans to retain the IFS workforce of approximately 1,000 full-time employees.