Ryder to Acquire Impact Fulfillment Services

In October 2023, Ryder announced its plans to acquire Impact Fulfillment Services (IFS), or IFS Holdings, LLC. The deal was expected 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.

According to Ryder’s announcement, it has 15 operations 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 are complementary to our existing suite of services,” says Sensing.

Ryder said the transaction was expected to add approximately $250 million in annual revenue to its supply chain solutions business segment.

Ryder integrates IFS

The integration of IFS into Ryder’s operations was set to encompass nine multiclient and six dedicated customer operations, totaling just under four million square feet.

To ensure a seamless transition for customers, Ryder planned to retain IFS’ workforce of about 1,000 full-time employees. Furthermore, Rob LeBaron, the president of IFS, was to 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).

For businesses running their own fulfillment, warehouse management software plays a similar role in keeping storage, packing and dispatch connected.

Recent financial results positive

Around the same time, Ryder unveiled its third-quarter 2023 results, showcasing a robust performance despite the challenges posed by a weak freight environment.

Its GAAP earnings per share (EPS) from continuing operations were $3.44, down from the previous year’s $4.82 due to challenges in vehicle sales and rentals. On a comparable (non-GAAP) basis, its earnings per share stood at $3.58, showing that the company managed to hold its ground.

While its total revenue dipped slightly to $2.9 billion from last year’s $3.0 billion, operating revenue increased by 1% to $2.4 billion.

Looking ahead, Ryder was optimistic. It raised its comparable EPS forecast to between $12.60 and $12.85 per share, up from the previous estimate of $12.20 to $12.70. The company also raised its Return on Equity (ROE) forecast.