Ryder (R) Boosts Market Presence With Cardinal Logistics Buyout
Ryder System R has announced the acquisition of Cardinal Logistics, marking a pivotal step in its commitment to becoming a leading dedicated contract carrier in North America. This acquisition aligns with the company's principal strategy to accelerate profitable growth in its dedicated business.
Cardinal Logistics, headquartered in Concord, NC, specializes in providing dedicated fleets and professional drivers catering to complex route structures across distribution centers, suppliers, and stores. The company's offerings extend to complementary freight brokerage services, last-mile delivery and contract logistics, primarily serving industries like consumer packaged goods, omnichannel, grocery, building products, automotive and industrial verticals.
The integration of Cardinal Logistics into Ryder's operations is expected to create synergies that benefit customers of both companies. Ryder plans to fully integrate Cardinal Logistics' operations, facilities and equipment into its dedicated transportation, fleet management and supply-chain businesses, with the transaction anticipated to be accretive in 2025.
The seamless transition is further ensured by the involvement of Cardinal Logistics' founders, Tom Hostetler and Vin McLoughlin, who were associated with Ryder in the 1980s and early 1990s. Both will join Ryder, bringing their wealth of experience to enhance the integration process.
Ryder's customer-centric culture and commitment to technology, exemplified by the RyderShare technology, position the company to deliver dynamic and resilient transportation solutions. The legal aspects of the transaction were facilitated by Greenberg Traurig LLP for Ryder, whereas William Blair LLC and McDermott Will & Emery LLP represented Cardinal Logistics. Further details about this acquisition will be shared during Ryder's fourth-quarter conference call on Wednesday, Feb 14, 2024.
Zacks Rank & Stocks to Consider
R currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Transportation sector are Air Canada ACDVF and Copa Holdings CPA.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May 2024 as part of its expanded international summer 2024 flying schedule to cater to increased demand.
Copa Holdings presently flaunts a Zacks Rank of 1. Upbeat air travel demand has been aiding its revenues.
We are encouraged by CPA's initiatives to modernize its fleet. The company has surpassed the consensus mark in the preceding four quarters, the average beat being 16.81%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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