WERNER ENTERPRISES INC acquired NEHDS Logistics, LLC for $64 million (including a $4 million earnout), a transaction completed in November 2021, structured as all cash.
NEHDS Logistics, LLC operates in Truckload Transportation Services (Werner Final Mile), is based in Northeast and Midwest United States (Monroe, Connecticut-based), had revenue of about $71.4 million in annual revenues for the twelve months ended September 2021; ~27% average annual revenue growth over the prior three years. Werner signed a definitive agreement and closed on the acquisition of 100% of the equity interests in NEHDS Logistics, LLC, based in Monroe, Connecticut, for a purchase price of $64 million including a $4 million earnout. NEHDS is a final mile residential delivery provider operating a fleet of over 400 delivery trucks primarily in the Northeast and Midwest U.S., delivering big and bulky products (primarily furniture and appliances) using 2-person delivery teams through a network of 19 cross-dock, warehouse and customer facilities. NEHDS achieved annual revenues of $71.4 million for the twelve months ended September 2021 with a three-year average revenue growth rate of 27%.
The addition of the NEHDS operations, management team, talented staff and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program. The combination of award winning service that NEHDS provides to its clients, along with the comprehensive portfolio of trucking capability, final mile logistics services and technology will bring the Werner and NEHDS customer base many advantages.
A growing final mile market leader with asset and employee-based operations experienced in complex big-and-bulky deliveries, complementing Werner's existing national independent-contractor agent network. Cost synergies expected in several areas of the business based on Werner's size and buying power and collaboration between NEHDS and Werner Final Mile. NEHDS was rebranded into Werner Final Mile; the NEHDS leadership team, drivers, non-driver associates and independent contractors remained with the business.
The addition of the NEHDS operations, management team, talented staff and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program. The combination of award winning service that NEHDS provides to its clients, along with the comprehensive portfolio of trucking capability, final mile logistics services and technology will bring the Werner and NEHDS customer base many advantages.Derek Leathers, Chairman, President and Chief Executive Officer, Werner Enterprises
Advisory firms were not disclosed for this transaction.