Werner acquires ReedTMS Logistics in $112M deal

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Werner Enterprises announced Monday that it has acquired freight broker ReedTMS Logistics for $112.4 million. The deal also included a small dedicated carrier.

The purchase price includes a maximum earnout of $7.5 million dependent on 2023 results.

Tampa, Florida-based ReedTMS generated $372 million in revenue through the two entities for the 12-month period ending Sept. 30. Ninety percent of the revenue in the combined portfolio comes from the truckload and freight brokerage platform, which has 70,000 carriers, 19,000 of which are considered active.

The company has grown revenue at a 28% compounded annual growth rate over the last five years, according to a news release said.

Founded in 1996, ReedTMS has more than 800 customers, two-thirds of which are in the food and beverage industries. Its top 10 accounts have been active with the broker for an average of eight years. Brokerage revenue on the platform is 65% contractual with the other 35% tied to the spot market.

A margin profile for the company was not provided but the release said the deal was expected to be accretive to earnings in the first year. Werner’s logistics segment generated $765 million in revenue with a 5.2% adjusted operating margin for the recently reported 12-month period.

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“ReedTMS Logistics further strengthens our freight brokerage capabilities,” said Derek Leathers, Werner’s chairman, president and CEO. “ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals.”

ReedTMS will remain a stand-alone operation with its leadership team, drivers and nondriver employees continuing to operate under the current banner.

“Werner will enable us to achieve key goals, including creating broader opportunities for our associates, expanding our service capabilities for our customers and helping us continue our quest to leverage best in class technology solutions for our associates, customers, suppliers and other stakeholders,” said Jason Reed, CEO of ReedTMS.

Drilling Deep: Your TMS and California’s AB5

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Group Companies

Acquisition price	$112.4M, earnout of up to $7.5M
ReedTMS revenue run rate	$372M
Werner’s revenue run rate	$2.7B
Earnings expectations	accretive in year one
Recent acquisitions by Werner	Baylor Trucking, Nehds Logistics, ECM Transport Group