Ryder Acquires UK-Based Commercial Truck Leasing, Rental and Maintenance Provider Hill Hire
Acquisition Adds 4,000 Heavy Duty Vehicles, Broadens Commercial Customer Base, and Complements Ryder’s UK Transportation Service Offering
June 08, 2011 08:04 AM Eastern Daylight Time
MIAMI--(EON: Enhanced Online News)--Ryder System, Inc. (NYSE:R), a leader in commercial transportation and supply chain management solutions, today announced it has acquired Bradford, England-based Hill Hire plc, an independently run and wholly owned subsidiary of Lloyds Banking Group. Hill Hire is a UK market leader in commercial truck leasing, rental and maintenance, with a solid base of contractual customers. The stock acquisition was completed on June 8, 2011 at a cash price of approximately £154 million (approximately $252 million).
“As we celebrate our 40th year of operating in the UK, this significant acquisition underscores Ryder’s commitment to serving current and future customers in this important market with a broader range of vehicles and expanded maintenance capabilities and infrastructure”
“As we celebrate our 40th year of operating in the UK, this significant acquisition underscores Ryder’s commitment to serving current and future customers in this important market with a broader range of vehicles and expanded maintenance capabilities and infrastructure,” said Ryder Chairman and Chief Executive Officer Greg Swienton.
The acquisition is expected to add approximately £90 million (approximately $147 million) in annual revenue to Ryder’s Global Fleet Management Solutions (FMS) business segment, and be accretive to Ryder’s earnings in 2011. Once the transition and consolidation process has been fully completed, the combined Ryder and Hill Hire business will operate under the Ryder name. The acquisition adds approximately 4,000 heavy duty vehicles, split evenly between contract hire (full service lease) and commercial rental; ancillary equipment including a large trailer fleet for contractual lease and rental; and the company’s workforce of 300 employees including maintenance technicians. The acquisition also encompasses all of Hill Hire’s 13 well-equipped vehicle maintenance facilities located throughout the UK.
David Hunt, Vice President and Managing Director, Fleet Management Solutions, Ryder Europe, said, “Hill Hire is a well respected and successful business serving the needs of national blue chip customers. The acquisition accelerates our growth strategy by expanding our fleet offering in the heavy duty vehicle contract hire (full service lease) and rental market, as well as our customer base in a sector that we have targeted for expansion.”
Mr. Hunt continued, “There are tremendous benefits in bringing the two businesses together. Hill Hire’s heavy duty vehicle fleet, which comprises 60% tractors, complements our existing fleet, which consists primarily of light and medium duty trucks. Combined, we will be able to provide expanded fleet choices and value for customers with additional payload and vehicle specification options to further strengthen the Ryder offering. Additionally, Hill Hire’s UK service facility network will enhance the geographic reach of our business, to better serve the needs of new and existing customers of the combined companies. Our Ryder team looks forward to delivering enhanced value to our customers through expanded resources and fleet options that will drive higher levels of efficiency into their transportation operations.”
About Hill Hire
Hill Hire was founded in Bradford, England (UK) in 1990 with only one depot (maintenance facility). Through a program of continuing investment, the business has grown rapidly and Hill Hire now operates 13 sales and service facilities throughout the UK, and employs 300 staff and technicians. Hill Hire provides contract hire (full service lease), commercial vehicle rental and maintenance services. In addition to its comprehensive power vehicle range, Hill Hire provides ancillary equipment, including a large trailer fleet. The company’s nationwide network of service centers uses the latest diagnostics, with trained maintenance technicians who maximize vehicle uptime and ensure that vehicles meet all necessary compliance and safety standards.
About Ryder Europe
Ryder’s European business was established in 1971 and this year the company celebrates its 40th anniversary in the UK. Ryder’s commercial vehicle solutions focus on Contract Hire (full service lease), Rental, Maintenance, and Dedicated Delivery Solutions (Dedicated Contract Carriage) which can be tailored for a wide range of business sectors. Ryder has grown in the UK through organic development and acquisition into a sizeable force in commercial transport. Over the last two years, Ryder has invested over £44 million ($72 million) into its rental fleet. The company operates from 41 operating locations throughout the UK and in Germany. Ryder works closely with the UK’s vehicle inspection agency to ensure that its workshops are equipped with the latest approved vehicle maintenance equipment and technology. In addition to serving the private sector, Ryder works with local authorities, Fire and Health authorities and the UK Ministry of Defence to provide a comprehensive range of contract hire (full service lease) and rental vehicle solutions.
About Ryder
Ryder is a Fortune 500 company providing leading-edge transportation, logistics and supply chain management solutions worldwide. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. For more information about Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995 including but not limited to statements concerning the expected benefits of the acquisition and its anticipated impact on our business, operations, product offerings and 2011 revenue and earnings. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements, including our ability to integrate the acquisition as projected, achieve planned synergies and retain customer levels, as well as those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
