Trucking firm Werner acquires FirstFleet for $245 million
Combined dedicated fleet includes more than 7,300 trucks, nearly 40,000 trailers
Werner Enterprises has acquired privately held dedicated trucking provider FirstFleet for approximately $245 million in cash.
The move expands its presence in the higher-margin dedicated transportation market and establishes Werner as the fifth-largest dedicated carrier in the United States, according to today’s Werner release. The transaction also includes the separate purchase of 11 FirstFleet real estate properties for $37.8 million, bringing the total deal value to about $282.8 million.
The acquisition becomes immediately accretive to earnings per share, according to the release. It should also boost earnings over the next two years, as FirstFleet generates more than $615 million in annual revenue, with a history of maintaining consistent operating margins.
Murfreesboro, Tenn.-based FirstFleet operates about 2,400 tractors, 11,000 trailers and 37 properties near roughly 130 customer locations nationwide, according to the release. The company focuses on stable end markets such as grocery, baked goods and corrugated packaging and has long-term customer contracts, with an average 17-year tenure among its top 10 customers.
The deal increases Omaha, Neb.-based Werner’s dedicated revenues by about 50% and significantly expands its network density, particularly across the eastern United States. The combined dedicated fleet totals more than 7,300 trucks and nearly 40,000 trailers.
Going forward, FirstFleet’s operation will continue within Werner’s Truckload Transportation Services segment, according to the release. Werner plans to retain most of FirstFleet’s management team and maintain its headquarters in Murfreesboro.
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