Werner announces its acquisition of ReedTMS Logistics

Omaha, Neb.-based Werner Enterprises, a global freight transportation and logistics services provider and the nation’s seventh-largest truckload carrier, said this week it has acquired Tampa, Fla.-based Reed Transport Services Inc. and RTS-TMS Inc., through the signing of a definitive agreement and closing on the acquisition of 100% of Reed’s stock.

Established in 1996, Reed Transport Services Inc. and RTS-TMS Inc. operates under the moniker of ReedTMS Logistics and is an asset-light logistics services provider and truckload carrier, offering freight brokerage and truckload services across various shipper verticals.

For the 12-month period ending September 30, 2022, ReedTMS revenue came in at $372 million, with 90% coming from freight brokerage (with 65% of revenue for this segment contractual and 35% transactional) and 10% coming from trucking. ReedTMS’s freight brokerage network is comprised of 19,000 active carriers and 70,000 approved carriers.

“We are thrilled to welcome the accomplished ReedTMS team to Werner. ReedTMS Logistics further strengthens our freight brokerage capabilities,” said Derek Leathers, Werner Chairman, President and Chief Executive Officer, in a statement. “ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals. This transaction continues to build upon our Werner DRIVE strategy and positions us for future profitable growth. We expect this acquisition to be accretive to diluted earnings per share in year one.”

ReedTMS serves more than 800 customers, with two-thirds of its revenue coming from the food and beverage sectors, which Werner said has “minimal customer overlap,” with Werner’s customer base, adding that Reed’s top 10 customers average eight years of tenure with the company.

Werner officials said that ReedTMS will be a standalone business within Werner, with Reed’s freight brokerage financial resulted reported within the Werner Logistics segment, with its truckload financial results reported within Werner’s Truckload Transportation Services segment.

“We are excited to join the Werner team, who we have always considered an industry leader,” said Jason Reed, CEO of ReedTMS Logistics, in a statement. “Werner will enable us to achieve key goals, including creating broader opportunities for our associates, expanding our service capabilities for our customers and helping us continue our quest to leverage best in class technology solutions for our associates, customers, suppliers and other stakeholders.”