Ryder System, Inc., the commercial fleet management, dedicated transportation, and supply chain solutions provider, has announced that it is strengthening its omni-channel fulfillment capabilities through the acquisition of all outstanding equity of MXD Group (MXD), an e-commerce fulfillment provider with a national network of facilities, including last mile capabilities.
With this acquisition—completed on April 2, 2018, at a price of approximately $120 million—Ryder is now the second largest last mile delivery provider of big and bulky goods.
Ryder has acquired 109 MXD e-commerce fulfillment facilities across the US and Canada, including 21 MXD-operated cross dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities. The acquisition also includes proprietary order management and visibility technology, which features real-time tracking and a customer service portal for rapid response and resolution. This significantly expands Ryder’s omni-channel fulfillment capabilities in two key areas:
- Ryder e-Commerce Fulfillment – With the additional 109 facilities, Ryder’s network now includes 121 e-commerce hubs covering more than 95% of the US and Canada within a two-day delivery timeframe. The network can serve any industry, as it can handle big and bulky products as well as small and large parcels.
- Ryder Last Mile – A last mile solution for retailers and shippers of big and bulky products will include home delivery and white glove installation with multiple tiers of service and a network of carriers throughout the US and Canada.
The acquisition, completed on April 2, 2018, is expected to be nominally accretive to earnings in 2018. Ryder anticipates earnings growth in future years to come from introducing these services to its extensive current customer base and leveraging its sales and marketing capabilities to attract new customers.