Ryder acquires Total Logistic Control
Ryder System Inc. of Miami, Fla., has completed its acquisition of Total Logistic Control of Holland from parent company Supervalu Inc., according to an announcement from Ryder.
Ryder (NYSE:R) reported that it purchased TLC stock for approximately $200 million. Supervalu, a grocery store conglomerate in Minneapolis, had owned TLC for five years.
According to Ryder, Peter Westermann, former TLC president and CEO, and members of the entire TLC organization will continue to work at TLC, which now will operate as Ryder Supply Chain Solutions’ consumer packaged goods division.
TLC provides transportation, warehousing and other logistics services to food, beverage and consumer packaged goods manufacturers throughout the U.S., with 34 facilities totaling more than 10 million square feet of warehouse space in 13 states and about 2,500 employees.
The acquisition is expected to add approximately $250 million in annual revenue to Ryder’s Supply Chain Solutions division, according to the announcement.
Ryder Chairman and CEO Greg Swienton said TLC has “all the elements to help us accelerate our capabilities and growth prospects in a high potential industry sector that we have been targeting for expansion.”
Ryder’s president of Global Supply Chain Solutions, John Williford, noted that months ago Ryder had announced plans to develop a new division focused on the consumer packaged goods industry. TLC’s capabilities in packaging and warehousing, including temperature-controlled facilities, was attractive to Ryder.
Ryder is a Fortune 500 company providing transportation, logistics and supply chain management services worldwide.
TLC is descended from Taylor Cold Storage, a Kalamazoo company that began operating frozen food warehouses around 1900, serving the Great Lakes region. By 1980, it was a major player in distribution services, with transportation deregulation allowing it to begin growing even more rapidly. The name changed to Total Logistic Control in the late 1980s.