Werner takes control of ECM Transport for $142.4m

– Expands terminal, fleet and driver footprint in the strategic Mid-Atlantic, Ohio and Northeast regions

– Boosts fleet by more than 6%; increases coverage for regional short-haul freight in these geographic markets

– Combines similar customer-centric cultures, both Werner and ECM are focused on the highest standards of safety and on-time service

– ECM achieved 2020 revenues of $108 million, with an operating margin of 19.8%; expected to be accretive to adjusted EPS in year one

OMAHA, Neb., July 01, 2021 (GLOBE NEWSWIRE) — Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s largest transportation and logistics companies, today announced it has signed a definitive agreement and closed on the acquisition of an 80% equity ownership stake in ECM Transport Group (“ECM”) for a purchase price of $142.4 million and retains an exclusive option to buy the remaining 20% of ECM Transport Group after a period of five years.

With 2020 revenues of $108 million, ECM consists of ECM Transport and Motor Carrier Services of Pennsylvania who are elite regional truckload carriers that operate nearly 500 trucks and 2,000 trailers in their network of 8 terminals and 18 drop yard facilities.

“The addition of ECM’s skilled drivers, non-driver associates and terminal network strengthens our portfolio by adding short-haul expertise in a segment in which consumer demand and supply chain needs are growing,” said Derek Leathers, Chairman, President and Chief Executive Officer.

“This transaction delivers on our ‘5 Ts + S’ strategy and will position us for further growth as we capitalize on positive market dynamics for the remainder of 2021 and beyond. We expect this transaction to be accretive in year one and anticipate cost synergies through integrated management of our combined fleet.”

To read the full release, please click here; stock little changed on the news; the main features of the combination can be found here.