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%. $142.4 million for an 80% equity ownership stake (with an exclusive option to acquire the remaining 20% after five years).
Why it was attractive
- 01 Increased exposure to the 200-300 mile length-of-haul segment
- 02 addition of over 500 highly-skilled tenured drivers in a constrained labor market
- 03 extremely low driver turnover
- 04 and a terminal footprint complementary to Werner's existing network
Capabilities acquired
Regional short-haul truckload carriage200-300 mile length-of-haul coverageterminal and drop-yard network across the Mid-Atlantic/Ohio/Northeasttenured driver base
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.