Ryder System Inc., a provider of supply chain, warehousing and transportation management solutions, has signed an agreement to acquire Holland, Michigan-based Total Logistic Control (TLC), an independently run, wholly owned subsidiary of grocery store chain SUPERVALU. TLC is a provider of supply chain solutions to U.S. food, beverage and consumer packaged goods (CPG) manufacturers. Financial terms were not disclosed.
Ryder will acquire TLC for cash under a stock purchase agreement. The acquisition is expected to add approximately $250 million in annual revenue to Ryder’s Supply Chain Solutions business segment. The acquisition is expected to close on December 31, 2010.
“This strategic acquisition is an exact fit with our strategy of developing a leading CPG capability and strengthening our focus in key vertical industry sectors,” says John Williford, Ryder’s president of global supply chain solutions. The company plans to build on TLC’s packaging and temperature-controlled warehousing capabilities by integrating client solutions using Ryder’s capabilities in dedicated contract carriage, transportation management, lean operational execution and logistics engineering.
TLC provides a suite of end-to-end services, including distribution management, contract packaging services and solutions engineering. TLC’s clients consist of local, regional, national, and international firms engaged in food and beverage manufacturing, consumer and wholesale distribution. TLC operates 34 facilities comprising 10.6 million square feet of dry and temperature-controlled warehousing across 13 states. TLC’s management team and 2,500 employees are expected to continue in similar roles with Ryder.