-Acquisition Adds 4,000 Heavy Duty Vehicles, Broadens Commercial
Customer Base, and Complements Ryder’s UK Transportation Service
Offering-
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE:R), a leader in commercial transportation and
supply chain management solutions, today announced it has acquired
Bradford, England-based Hill Hire plc, an independently run and wholly
owned subsidiary of Lloyds Banking Group. Hill Hire is a UK market
leader in commercial truck leasing, rental and maintenance, with a solid
base of contractual customers. The stock acquisition was completed on
June 8, 2011 at a cash price of approximately £154 million
(approximately $252 million).
“As we celebrate our 40th year of operating in the UK, this
significant acquisition underscores Ryder’s commitment to serving
current and future customers in this important market with a broader
range of vehicles and expanded maintenance capabilities and
infrastructure,” said Ryder Chairman and Chief Executive Officer Greg
Swienton.
The acquisition is expected to add approximately £90 million
(approximately $147 million) in annual revenue to Ryder’s Global Fleet
Management Solutions (FMS) business segment, and be accretive to Ryder’s
earnings in 2011. Once the transition and consolidation process has been
fully completed, the combined Ryder and Hill Hire business will operate
under the Ryder name. The acquisition adds approximately 4,000 heavy
duty vehicles, split evenly between contract hire (full service lease)
and commercial rental; ancillary equipment including a large trailer
fleet for contractual lease and rental; and the company’s workforce of
300 employees including maintenance technicians. The acquisition also
encompasses all of Hill Hire’s 13 well-equipped vehicle maintenance
facilities located throughout the UK.
David Hunt, Vice President and Managing Director, Fleet Management
Solutions, Ryder Europe, said, “Hill Hire is a well respected and
successful business serving the needs of national blue chip customers.
The acquisition accelerates our growth strategy by expanding our fleet
offering in the heavy duty vehicle contract hire (full service lease)
and rental market, as well as our customer base in a sector that we have
targeted for expansion.”
Mr. Hunt continued, “There are tremendous benefits in bringing the two
businesses together. Hill Hire’s heavy duty vehicle fleet, which
comprises 60% tractors, complements our existing fleet, which consists
primarily of light and medium duty trucks. Combined, we will be able to
provide expanded fleet choices and value for customers with additional
payload and vehicle specification options to further strengthen the
Ryder offering. Additionally, Hill Hire’s UK service facility network
will enhance the geographic reach of our business, to better serve the
needs of new and existing customers of the combined companies. Our Ryder
team looks forward to delivering enhanced value to our customers through
expanded resources and fleet options that will drive higher levels of
efficiency into their transportation operations.”
About Hill Hire
Hill Hire was founded in Bradford, England (UK) in 1990 with only one
depot (maintenance facility). Through a program of continuing
investment, the business has grown rapidly and Hill Hire now operates 13
sales and service facilities throughout the UK, and employs 300 staff
and technicians. Hill Hire provides contract hire (full service lease),
commercial vehicle rental and maintenance services. In addition to its
comprehensive power vehicle range, Hill Hire provides ancillary
equipment, including a large trailer fleet. The company’s nationwide
network of service centers uses the latest diagnostics, with trained
maintenance technicians who maximize vehicle uptime and ensure that
vehicles meet all necessary compliance and safety standards.
About Ryder Europe
Ryder’s European business was established in 1971 and this year the
company celebrates its 40th anniversary in the UK. Ryder’s commercial
vehicle solutions focus on Contract Hire (full service lease), Rental,
Maintenance, and Dedicated Delivery Solutions (Dedicated Contract
Carriage) which can be tailored for a wide range of business sectors.
Ryder has grown in the UK through organic development and acquisition
into a sizeable force in commercial transport. Over the last two years,
Ryder has invested over £44 million ($72 million) into its rental fleet.
The company operates from 41 operating locations throughout the UK and
in Germany. Ryder works closely with the UK’s vehicle inspection agency
to ensure that its workshops are equipped with the latest approved
vehicle maintenance equipment and technology. In addition to serving the
private sector, Ryder works with local authorities, Fire and Health
authorities and the UK Ministry of Defence to provide a comprehensive
range of contract hire (full service lease) and rental vehicle solutions.
About Ryder
Ryder is a Fortune 500 company providing leading-edge
transportation, logistics and supply chain management solutions
worldwide. Ryder’s stock (NYSE:R) is a component of the Dow Jones
Transportation Average and the Standard & Poor’s 500 Index. For more
information about Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward-Looking Statements: Certain statements
and information included in this news release are
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995 including but not limited to
statements concerning the expected benefits of the acquisition and its
anticipated impact on our business, operations, product offerings and
2011 revenue and earnings. These forward-looking
statements are based on our current plans and expectations and are
subject to risks, uncertainties and assumptions. Accordingly,
these forward-looking statements should be evaluated with consideration
given to the many risks and uncertainties that could cause actual
results and events to differ materially from those in the
forward-looking statements, including our ability to integrate the
acquisition as projected, achieve planned synergies and retain customer
levels, as well as those risks set forth in our periodic filings with
the Securities and Exchange Commission. New risks emerge from
time to time. It is not possible for management to predict all
such risk factors or to assess the impact of such risks on our business.
Accordingly, we undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events, or otherwise.
Source: Ryder System, Inc.