- Expands Werner Final Mile capabilities with a growing market leader primarily serving the Northeast U.S and Midwest and expanding in the Mid-Atlantic and Southeast.
- Integrates with Werner’s existing nationwide final mile home delivery network for big and bulky products to offer current and existing customers an expanded portfolio of transportation solutions.
- NEHDS Logistics, LLC achieved annual revenues of $71.4 million for the twelve months ended September 2021 and produced an average annual revenues growth rate of 27% over the last three years. NEHDS is expected to be accretive to Werner’s earnings per share in 2022.
“The addition of the NEHDS operations, management team,
talented staff and strong customer relationships to the Werner family
represents a significant step forward in our Final Mile delivery program. The
combination of award winning service that NEHDS provides to its clients, along
with the comprehensive portfolio of trucking capability, final mile logistics
services and technology will bring the Werner and NEHDS customer base many
advantages,” said Derek Leathers, Chairman, President and Chief Executive
Officer.
NEHDS skilled drivers, operations team, independent
contractors and facilities network strengthen our big and bulky products
delivery offering by adding asset and employee-based operations with experience
in complex deliveries to our already established national network of
independent contractor agent locations. We expect this transaction to be
accretive in 2022 and anticipate cost synergies in several areas of the
business.
- Shared values of obtaining winning customers with high expectations, establishing long-term mutual service objectives, and delivering best-in-class performance in the service-sensitive, consumer driven ecommerce delivery market.
- The talented NEHDS leadership team, drivers, non-driver associates and independent contractors will remain with the business, and we will rebrand NEHDS into Werner Final Mile.
- Cost-saving synergies based on Werner’s size and buying power and collaboration between NEHDS and Werner Final Mile.
Leathers continued, “Both companies share a passion for
valuing its professional drivers, associates and customers. We look forward to
welcoming the NEHDS team and working together to maintain and grow the
excellent relationships with current customers, independent contractors,
employee drivers and office associates. We are excited at the opportunity to
create additional value for new and existing customers. We remain committed to
profitably growing our Logistics portfolio.”
“With a deep heritage of compassion for all associates,
contractors and customers, we are grateful to unite with a likeminded company
in Werner that has similar core values to NEHDS. Werner’s technology,
logistical expertise and geographic footprint is extremely attractive in partnering
together. I am personally grateful for the opportunity to join the Werner team
along with our entire management team, associates and contractors,” said Gerry
Burdo, Founder and President of NEHDS.
Werner financed the transaction through a combination of
cash on hand and existing credit facilities. Beginning in fourth quarter 2021,
NEHDS financial results will be included in the Werner Logistics segment.
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