WERNER ENTERPRISES INC acquires ECM Transport Group (ECM Associated, LLC)

WERNER ENTERPRISES INC acquired ECM Transport Group (ECM Associated, LLC) for $142.4 million for an 80% equity ownership stake (with an exclusive option to acquire the remaining 20% after five years), a transaction completed in July 2021, structured as all cash.

ECM Transport Group (ECM Associated, LLC) operates in Truckload Transportation Services, is based in Mid-Atlantic, Ohio and Northeast United States (Pennsylvania-based), had revenue of about 2020 revenues of $108 million with an operating margin of 19.8%. Werner signed a definitive agreement and closed on the acquisition of an 80% equity ownership stake in ECM Transport Group for a purchase price of $142.4 million, retaining an exclusive option to buy the remaining 20% after five years. ECM consists of ECM Transport and Motor Carrier Services of Pennsylvania, elite regional truckload carriers that operate nearly 500 trucks and 2,000 trailers across a network of 8 terminals and 18 drop yard facilities in the Mid-Atlantic, Ohio and Northeast. ECM achieved 2020 revenues of $108 million with an operating margin of 19.8%.

The addition of ECM's skilled drivers, non-driver associates and terminal network strengthens our portfolio by adding short-haul expertise in a segment in which consumer demand and supply chain needs are growing. This transaction delivers on our '5 Ts + S' strategy and will position us for further growth as we capitalize on positive market dynamics for the remainder of 2021 and beyond. We expect this transaction to be accretive in year one and anticipate cost synergies through integrated management of our combined fleet.

Increased exposure to the 200-300 mile length-of-haul segment, addition of over 500 highly-skilled tenured drivers in a constrained labor market, extremely low driver turnover, and a terminal footprint complementary to Werner's existing network. Cost synergies expected through combined management of the fleet; increases Werner's fleet size by over 6%. ECM operates as a standalone business unit within Werner; the ECM brand and existing leadership (including founder and President Ed Meier) were retained to ensure smooth integration and high driver retention.