Werner acquires dedicated carrier FirstFleet for $245M

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Werner Enterprises announced Wednesday that it has acquired dedicated bearer FirstFleet for $245 cardinal successful cash. The woody adds implicit $615 cardinal successful yearly gross and much than 2,400 tractors to Werner’s existing dedicated fleet, making Werner the fifth-largest dedicated supplier successful the U.S.

Werner’s (NASDAQ: WERN) dedicated fleet presently includes 4,865 units and past 12 months’ gross of $1.15 billion. Werner generates astir $3 cardinal successful consolidated yearly revenue.

Murfreesboro, Tennessee-based FirstFleet besides has a fleet of 11,000 trailers and 37 facilities. The carrier’s lawsuit database mostly includes grocery, baked goods and packaging companies.

“By uniting FirstFleet’s expertise successful complementary caller verticals with our resources and astir 5,000 Dedicated trucks, we volition amended our competitory presumption and accelerate profitable growth,” said Derek Leathers, Werner’s president and CEO. … “Together, we are amended positioned to thrust tech-enabled solutions and present lasting worth for our customers, drivers and shareholders.”

As portion of the deal, Werner volition get FirstFleet and its owned existent property (11 properties valued astatine $37.8 million) for astir $282.8 million.

Werner has identified $18 cardinal successful yearly synergies. The acquisition is expected to beryllium instantly accretive to net per stock and escaped currency flow.

Werner plans to support the bulk of FirstFleet’s absorption team, which volition proceed to run astatine the Tennessee headquarters.

“Our squad has agelong admired Werner’s leadership, and we powerfully judge this transaction is an fantabulous accidental to leverage best-in-class exertion and present important worth to each our stakeholders,” said Paul Wilson, FirstFleet co-owner.

Wofford Advisors advised Werner connected the deal, with Wells Fargo and TD Securities providing further fiscal advisory support. Raymond James served arsenic FirstFleet’s pb adviser. Brentwood Capital Advisors besides advised FirstFleet.

Werner volition big a telephone astatine 10:30 a.m. EST connected Wednesday to sermon the deal.

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