Ryder System Inc. has announced finalizing its acquisition of Des Moines, IA-based Ruan Leasing Co., a commercial truck leasing and contract maintenance company. The purchase price was approximately $145 million.
The acquisition is expected to add $125 million in annualized revenue and be accretive to earnings in 2004. Ryder has raised its full-year 2004 earnings forecast to fall between $2.52 to $2.64 per diluted share.
In the transaction Ryder acquired Ruan's fleet of over 6,400 vehicles, 37 of its 111 service locations, more than 500 customers and full service contract maintenance agreements covering approximately 1,700 vehicles.
The combined network will operate under the Ryder name and allow the parent company to leverage its existing U.S. infrastructure in key markets while expanding its presence in the Midwest, Southeast, Mid-Atlantic and Southwest regions.
"As a result of the acquisition and Ruan's strong customer base, Ryder can continue to develop valuable customer relationships to further penetrate new markets, increase market share and provide long-term growth," said Gregory T. Swienton, Ryder chairman, president & CEO.