Ryder (R) to Boost Supply-Chain Operations Through IFS Buyout
Ryder System R has entered into a definitive agreement to acquire all the outstanding equity of IFS Holdings, LLC. IFS Holdings, also known as Impact Fulfillment Services or IFS, is a contract packaging, manufacturing and warehousing services company with operations in 15 states.
Even though the terms of this deal have not yet been disclosed, Ryder anticipates closing the same in early November 2023. The transaction is anticipated to add approximately $250 million in annual total revenues to Ryder’s supply-chain solutions segment and be accretive to shareholders. Per Steve Sensing, president of Ryder’s supply-chain solutions unit, “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”.
Following the closure of the deal, customers of IFS will gain access to Ryder’s capabilities as a fully integrated port-to-door logistics provider. Moreover, it will acquire 15 operations across Florida, Georgia, Illinois, North Carolina, Ohio, Pennsylvania, Texas, Utah and California. Post deal completion, Rob LeBaron, IFS’ president, will join R as vice president of contract manufacturing and packaging. Todd Porterfeld, the founder of IFS, intends to retire after the completion of this merger.
Zacks Rank & Key Picks
Ryder currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the Zacks Transportation sector may also consider Freightcar America RAIL and Ardmore Shipping ASC. RAIL and ASC currently flaunt a Zacks Rank #1 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RAIL’s current-year earnings has increased 13% over the past 60 days. RAIL delivered an earnings surprise of 114.29% in second-quarter 2023.
The Zacks Consensus Estimate for ASC’s current-year earnings has gained 1.2% over the past 60 days. It has outpaced the Zacks Consensus Estimate for earnings in three of the past four quarters (delivering in-line earnings in the other quarter). The average beat is 3.34%.
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