Ryder has announced its plans to acquire Impact Fulfillment Services (IFS), or IFS Holdings, LLC. The deal is set to be completed in early November 2023, pending regulatory approvals.
This will see Ryder taking over all outstanding equity of IFS, which is known for its expertise in contract packaging, manufacturing, and warehousing. The acquisition aligns with Ryder’s growth strategy.
Bolstering fulfillment
IFS, a stalwart in the co-packing and co-manufacturing realm, caters to major consumer brands in the United States, particularly in the consumer packaged goods, retail, and healthcare sectors.
It has 15 operational facilities spread across several states, including Florida, Georgia, Illinois, North Carolina, Ohio, Pennsylvania, Texas, Utah, and California. IFS has carved a niche in blending and filling dry powder and viscous products.
Ryder’s president of supply chain solutions, Steve Sensing, believes the acquisition aligns perfectly with the company’s growth plan. “The acquisition of IFS supports our strategy to accelerate growth in our supply chain business, providing Ryder with new capabilities that complement our existing suite of services,” says Sensing.
This development is poised to add approximately $250 million in annual revenue to Ryder’s supply chain solutions business segment.
Ryder integrates IFS
The integration of IFS into Ryder’s operations will encompass nine multiclient and six dedicated customer operations, totaling just under four million square feet.
To ensure a seamless transition for customers, Ryder plans to retain IFS’ workforce of about 1,000 full-time employees. Furthermore, Rob LeBaron, the president of IFS, will join Ryder as the vice president of contract manufacturing and packaging.
“Ryder already serves the top 10 U.S. food and beverage companies, and this acquisition will expand and strengthen our relationships with those customers while also attracting new customers in additional verticals, especially in retail, health, and beauty,” says Darin Cooprider, senior vice president of consumer packaged goods (CPG) .
Recent financial results positive
Ryder has recently unveiled its third-quarter 2023 results, showcasing a robust performance despite the challenges posed by a weak freight environment.
Its earnings per share (EPS) from ongoing operations were $3.44, down from the previous year’s $4.82 due to challenges in vehicle sales and rentals. However, when you consider all the factors, its earnings per share stood at $3.58, showing that the company managed to hold its ground.
While its overall revenue dipped slightly to $2.9 billion from last year’s $3.0 billion, the operational revenue increased by 1% to $2.4 billion.
Looking ahead, Ryder is optimistic. It has increased its earnings forecast, expecting to earn between $12.60 and $12.85 per share, up from the previous estimate of $12.20 to $12.70. The company also managed to improve its Return on Equity (ROE) forecast.
About the author
Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
