WERNER ENTERPRISES INC acquires ReedTMS Logistics (Reed Transport Services, Inc. and RTS-TMS, Inc.)

WERNER ENTERPRISES INC acquired ReedTMS Logistics (Reed Transport Services, Inc. and RTS-TMS, Inc.), a transaction completed in November 2022, structured as all cash.

ReedTMS Logistics (Reed Transport Services, Inc. and RTS-TMS, Inc.) operates in Werner Logistics + Truckload Transportation Services (Dedicated), is based in United States (Tampa, Florida-based), had revenue of about $372 million in revenues for the twelve months ended September 30, 2022 (90% freight brokerage, 10% trucking); ~28% revenue CAGR over the prior five years. Werner signed a definitive agreement and closed on the acquisition of 100% of the stock of Reed Transport Services, Inc. and RTS-TMS, Inc., doing business as ReedTMS Logistics. Founded in 1996 and based in Tampa, Florida, ReedTMS is a leading asset-light logistics provider and truckload carrier offering freight brokerage and truckload solutions to a diverse customer base. ReedTMS generated revenues of $372 million for the twelve months ended September 30, 2022 (90% freight brokerage, 10% trucking), serving more than 800 customers with two-thirds of revenue in the food and beverage industries, an extensive brokerage network of 19,000 active and 70,000 approved carriers, and a 28% revenue CAGR over the prior five years.

We are thrilled to welcome the accomplished ReedTMS team to Werner. ReedTMS Logistics further strengthens our freight brokerage capabilities. ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals. This transaction continues to build upon our Werner DRIVE strategy and positions us for future profitable growth. We expect this acquisition to be accretive to diluted earnings per share in year one.

A large asset-light logistics platform with minimal customer overlap with Werner, two-thirds of revenue in stable food and beverage verticals, top-10 customers averaging eight years of tenure, and an extensive brokerage carrier network. Diversifies and expands Werner's logistics industry verticals and freight brokerage capabilities; new customers with minimal overlap. ReedTMS operates as a standalone business unit within Werner; freight brokerage results are reported in the Werner Logistics segment and truckload results in the Dedicated business unit of the Truckload Transportation Services segment. The ReedTMS brand and leadership were retained.