Ryder System Inc. acquires Bradford, England-based Hill Hire plc

Ryder System Inc, a leader in commercial transportation and supply chain management solutions, Thursday announced it has acquired Bradford, England-based Hill Hire plc, an independently run and wholly owned subsidiary of Lloyds Banking Group.

Hill Hire is a UK market leader in commercial truck leasing, rental and maintenance, with a solid base of contractual customers. The stock acquisition was completed on June 8, 2011 at a cash price of approximately £154 million (approximately $252 million).

Ryder Chairman and Chief Executive Officer Greg Swienton noted that as the firm celebrates its 40th  year of operating in the UK, this significant acquisition underscores Ryder’s commitment to serving current and future customers in this important market with a broader range of vehicles and expanded maintenance capabilities and infrastructure.

The acquisition is expected to add approximately £90 million (approximately $147 million) in annual revenue to Ryder’s Global Fleet Management Solutions (FMS) business segment, and be accretive to Ryder’s earnings in 2011. Once the transition and consolidation process has been fully completed, the combined Ryder and Hill Hire business will operate under the Ryder name.

The acquisition adds approximately 4,000 heavy duty vehicles, split evenly between contract hire (full service lease) and commercial rental; ancillary equipment including a large trailer fleet for contractual lease and rental; and the company’s workforce of 300 employees including maintenance technicians. The acquisition also encompasses all of Hill Hire’s 13 well-equipped vehicle maintenance facilities located throughout the UK.
 
David Hunt, Vice President and Managing Director, Fleet Management Solutions, Ryder Europe, said, Hill Hire is a well respected and successful business serving the needs of national blue chip customers. The acquisition accelerates the company’s growth strategy by expanding its fleet offering in the heavy duty vehicle contract hire (full service lease) and rental market, as well as its customer base in a sector that it has targeted for expansion.
 
Mr. Hunt further reiterated that there are tremendous benefits in bringing the two businesses together. Hill Hire’s heavy duty vehicle fleet, which comprises 60% tractors, complements Ryder’s existing fleet, which consists primarily of light and medium duty trucks.

Combined, the firm’s will be able to provide expanded fleet choices and value for customers with additional payload and vehicle specification options to further strengthen the Ryder offering.

Additionally, Hill Hire’s UK service facility network will enhance the geographic reach of Ryder’s business, to better serve the needs of new and existing customers of the combined companies.

9th June 2011