Ryder to Buy Impact Fulfillment Services

Ryder will integrate the IFS facilities and operations into its supply chain solutions business. (Ryder System Inc.)

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Ryder System Inc. is to buy IFS Holdings, also known as Impact Fulfillment Services, for an undisclosed sum, the Miami-based company said Oct. 23.

The companies expect to complete the transaction in early November, Ryder said, adding that the deal would boost its supply chain business.

IFS specializes in contract packaging, contract manufacturing and warehousing, including for some of the largest U.S. consumer brands, primarily in the consumer packaged goods, retail and health care sectors, Ryder said.

Ryder’s stock price fell after the deal was announced Oct. 23, closing 1.1% lower at $100.55 per share.

"We see considerable opportunity to leverage these new co-packaging and co-manufacturing capabilities across our industry verticals like #CPG, #Retail, #healthcare, and beauty..." https://t.co/AvxIeiCLHv#logistics #supplychain #Transportation — Ryder (@RyderSystemInc) October 23, 2023

Buying IFS is expected to add about $250 million in annual total revenue to Ryder’s supply chain solutions business segment, it said.

Ryder plans to retain IFS’ workforce of around 1,000 full-time employees. IFS President Rob LeBaron will join Ryder as vice president of contract manufacturing and packaging. IFS founder Todd Porterfield plans to retire.

“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,” said Steve Sensing, president of supply chain solutions at Ryder.

“Initially, the co-packaging and co-manufacturing services will roll into our CPG vertical; however, we see considerable opportunity to leverage these new capabilities across other industry verticals,” Sensing said.

IFS has a blue-chip customer base, utilizing co-packing and co-manufacturing in both food and non-food products, including 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,” noted Darin Cooprider, senior vice president of CPG for Ryder.

Ryder will integrate the IFS facilities and operations into its supply chain solutions business, including nine multiclient and six dedicated customer operations, totaling just under 4 million square feet.

Earlier in the quarter, Ryder added a distribution center in Aurora, Ill., as part of efforts to expand its multiclient warehouse network.

Ryder Supply Chain Solutions ranks No. 9 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 10 on the TT Top 100 list of the largest logistics companies.

Ryder will report third-quarter earnings Oct. 25.