Supply chain, transportation and fleet management network Ryder System, Inc., on Monday (Dec. 13) announced it has agreed to acquire omnichannel fulfillment and logistics services company Whiplash for about $480 million in cash.
Whiplash offers scalable eCommerce and omnichannel fulfillment solutions to more than 250 brands from its 19 warehouses totaling about 7 million square feet.
The companies expect to finalize the deal by the end of this month or in January 2022, subject to antitrust approvals and customary closing conditions.
“The acquisition of Whiplash is consistent with our strategy to accelerate growth in our higher-return supply chain business,” Robert Sanchez, chairman and chief executive officer for Ryder, said in the announcement. It also expands our e-commerce and omnichannel fulfillment network and reflects our continued focus on technology and innovation.
“Whiplash’s best-in-class e-commerce platform and key geographic strongholds—coupled with Ryder’s industry-leading transportation logistics solutions, including our robust Ryder Last Mile delivery network for big-and-bulky goods — positions us to deliver incredible value for our customers who are looking for more advanced e-fulfillment solutions in today’s ever-changing landscape,” he said.
Whiplash’s facilities, operations, technology, and warehouse automation and robotics will become part of Ryder’s eCommerce fulfillment offering within its supply chain solutions business unit. Ryder will retain all of Whiplash’s employees as part of the deal.
The acquisition gives Ryder eCommerce fulfillment facilities in Chino, Calif; City of Industry, Calif.; Long Beach, Calif.; Jacksonville, Fla.; Savannah, Ga.; Newark, N.J.; Secaucus, N.J.; Clifton, N.J.; Columbus, Ohio; Salt Lake City, Utah; and Sumner, Wash., and gives the firm port presence in all four corners of the U.S.
Ryder is expected to deliver to 100% of the U.S. within two days and 60% of the U.S. within one day.
“This announcement signals a new accelerated phase of growth for Whiplash that will benefit our current customers and dramatically enhance our ability to scale and deliver innovation for digitally-native brands and omnichannel retailers,” said Jeff Wolpov, chief executive officer of Whiplash, in the joint announcement.
In July, Ryder partnered with Bed Bath & Beyond Inc. on “modernizing and reinventing its supply chain to significantly improve merchandise replenishment.” Ryder is adding two regional distribution centers that will cut product replenishment times to both BBB and buybuy BABY stores from 35 days to less than 10 days, part of a $250 million capital management project.