MIAMI - Transportation management company Ryder System Inc. said Tuesday it has agreed to acquire nearly all the assets of Edart Leasing Company LLC to help expand its reach in the Northeast market.
Ryder will acquire the Hartford, Conn., company's truck leasing, commercial truck rental and contract maintenance businesses. Financial terms of the agreement were not disclosed.
Edart Leasing, a family owned transportation services provider, has nine locations in Connecticut, Massachusetts, and New Jersey. Ryder will acquire Edart's fleet of roughly 1,450 full service lease and 150 rental units, which serve more than 340 contract customers. The company will also acquire roughly 600 vehicles that will be sold in the used truck market.
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In a note to investors late Tuesday, Stifel Nicolaus & Co. analyst David Ross said he expects the deal to add modestly to earnings.
"The company has a solid track record of growing through these small, regional acquisitions," said Ross, who maintained a "Buy" rating on the stock. "We would expect to see more of these over the next few quarters, as the company looks to grow in this difficult economic environment and is likely getting good prices for these deals."
The acquisition is expected to close in January, pending customary closing conditions.
Ryder will acquire the Hartford, Conn., company's truck leasing, commercial truck rental and contract maintenance businesses. Financial terms of the agreement were not disclosed.
Edart Leasing, a family owned transportation services provider, has nine locations in Connecticut, Massachusetts, and New Jersey. Ryder will acquire Edart's fleet of roughly 1,450 full service lease and 150 rental units, which serve more than 340 contract customers. The company will also acquire roughly 600 vehicles that will be sold in the used truck market.
Story continues below ↓advertisement | your ad here
In a note to investors late Tuesday, Stifel Nicolaus & Co. analyst David Ross said he expects the deal to add modestly to earnings.
"The company has a solid track record of growing through these small, regional acquisitions," said Ross, who maintained a "Buy" rating on the stock. "We would expect to see more of these over the next few quarters, as the company looks to grow in this difficult economic environment and is likely getting good prices for these deals."
The acquisition is expected to close in January, pending customary closing conditions.
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