Ryder System Inc. is acquiring Impact Fulfillment Services Holdings LLC, a contract packaging, manufacturing and warehousing services company with operations in 15 states.
Terms of the definitive agreement reached in the third quarter were undisclosed. IFS also specializes in display engineering, product launches, multichannel programs and club store programs. Ryder expects to close the purchase in early November.
Miami-based Ryder is acquiring all outstanding equity of the company and will keep its approximately 1,000 employees. IFS President Rob LeBaron will join Ryder as vice president of contract manufacturing and packaging.
Ryder expects $250 million revenue boost
Terms will be included in Ryder’s third-quarter filing with the Securities and Exchange Commission. Ryder expects to add $250 million in annual revenue with the deal being accretive to shareholders.
IFS specializes in contract packaging, contract manufacturing and warehousing. Its clients include some of the largest and best-known consumer packaged goods brands in the United States, including retail and health care.
Ryder gets nine multiclient and six dedicated facilities totaling just under 4 million square feet across Florida, Georgia, Illinois, North Carolina, Ohio, Pennsylvania, Texas, Utah and California.
‘Strategy to accelerate growth in our supply chain business’
“The acquisition of IFS supports our strategy to accelerate growth in our supply chain business, providing Ryder with new capabilities that are complementary to our existing suite of services,” Steve Sensing, Ryder president of supply chain solutions, said in a news release Monday.
Ryder initially will roll the co-packaging and co-manufacturing services into its CPG vertical but sees opportunities across other industries.
IFS has built a blue-chip customer base in co-packing and co-manufacturing in both food and nonfood products. It has a specialty in blending and filling dry powder and viscous products.
“Ryder already serves the top 10 U.S. food and beverage companies. And this acquisition will expand and strengthen our relationships with those customers while also attracting new customers in additional verticals, especially in retail, health, and beauty,” said Darin Cooprider, Ryder senior vice president of CPG.
Opening doors to more industries
IFS customers will benefit from access to Ryder’s capabilities as a fully integrated port-to-door logistics provider, Cooprider said.
LeBaron of IFS agreed.
“As we considered the next step in our growth strategy, it became clear that joining Ryder would open doors in just about every industry vertical while allowing our marquee customer base to leverage Ryder’s comprehensive suite of services,” he said.
IFS founder Todd Porterfeld plans to retire after the merger.
“Thinking about the future, I want to ensure our employees are in a place where they can continue to grow, and our customers are in the best possible hands,” he said. “I believe Ryder is that place.”
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