Ryder System is significantly expanding its dedicated transportation services business with the acquisition of Cardinal Logistics from investment firm H.I.G Capital. The purchase price was not disclosed.
While full details of the acquisition have not been revealed pending Ryder’s Q4 earnings call on Feb. 14, the deal underscores an aggressive growth strategy for Ryder’s dedicated offerings.
Accelerating Dedicated Growth
Ryder’s Dedicated Transportation Solutions (DTS) division accounted for $448 million of the company’s $3.2 billion total revenue in Q3 2022. Cardinal had 2022 revenue of around $1.1 billion, according to Transport Topics’ ranking of top dedicated carriers.
The buyout will expand DTS’ scale and market presence, advancing Ryder’s focus on dedicated services as a key strategic priority. DTS aims to provide customers with a comprehensive solution encompassing equipment, drivers, routing expertise and more.
In a statement, Ryder said the Cardinal acquisition will drive profitable growth in its dedicated business starting in 2025 after integration completion. While Cardinal’s operations will likely be absorbed across Ryder’s business segments, the deal appears centered on turbocharging DTS specifically.
Cardinal brings specialized experience in key verticals like consumer goods, retail, grocery, industrial and building supplies – areas highly relevant to Ryder’s customer base.
Cardinal was founded in 1997 by CEO Tom Hostetler and Chairman Vin McLoughlin, both formerly of Ryder. In a statement, Hostetler highlighted the culture match and their shared history as factors for choosing Ryder. “We experienced firsthand Ryder’s people-first, customer-centric culture, and that had an impact on us,” he noted.
The close alignment in values and collaborative history suggests an easier path to integration between the companies.
Expanded Midwest Presence
In addition to scaling overall dedicated capacity, the Cardinal acquisition significantly bolsters Ryder’s Midwest footprint. Ryder has actively expanded its dedicated presence across Minnesota, Illinois and Ohio over the past year.
The Cardinal deal caps this regional buildout with Cardinal’s strong positions across key Midwest states. Folding these operations under Ryder’s umbrella enables expanded dedicated coverage and service integration opportunities.
Positioned for Growth
The Cardinal Logistics deal caps off recent acquisitions for Ryder expanding its dedicated footprint across the Midwest, deepening expertise in key customer verticals.
Combined with organic growth and new business wins, Ryder now appears firmly positioned to scale up its asset-light, high-service dedicated offering in coming years.
With both companies sharing roots back to Ryder’s beginnings, this acquisition brings things full circle while setting the stage for Ryder’s next chapter of high-impact dedicated growth.
By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.