OMAHA, Neb.,— Werner Enterprises, Inc., one of the nation’s largest transportation and logistics companies, has announced it has signed a definitive agreement and has closed on the acquisition of Monroe, Connecticut-based NEHDS Logistics, LLC for $64 million. That includes a $4 million earnout, according to a Werner news release.
NEHDS operates a fleet of over 400 delivery trucks primarily in the Northeast and Midwest U.S. corridors. The company delivers primarily big and bulky products using two-person delivery teams performing residential and commercial deliveries through a network of 19 cross dock, warehouse and customer facilities.
“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,” said Derek Leathers, Werner’s chairman, president and chief executive officer.
Leathers further stated that NEHDS’s skilled drivers, operations team, independent contractors and facilities network “strengthen our big and bulky products delivery offering by adding asset and employee-based operations with experience in complex deliveries to our already established national network of independent contractor agent locations. We expect this transaction to be accretive in 2022 and anticipate cost synergies in several areas of the business.”
The NEHDS leadership team, drivers, non-driver associates and independent contractors will remain with the business, and NEHDS will be rebranded into Werner Final Mile.
Leathers continued, “Both companies share a passion for valuing its professional drivers, associates and customers. We look forward to welcoming the NEHDS team and working together to maintain and grow the excellent relationships with current customers, independent contractors, employee drivers and office associates. We are excited at the opportunity to create additional value for new and existing customers. We remain committed to profitably growing our Logistics portfolio.”
Gerry Burdo, founder and president of NEHDS, said of the deal: “With a deep heritage of compassion for all associates, contractors and customers, we are grateful to unite with a likeminded company in Werner that has similar core values to NEHDS. Werner’s technology, logistical expertise and geographic footprint is extremely attractive in partnering together. I am personally grateful for the opportunity to join the Werner team along with our entire management team, associates and contractors.”
Werner financed the transaction through a combination of cash on hand and existing credit facilities. Beginning in fourth quarter 2021, NEHDS financial results will be included in the Werner Logistics segment.
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