Werner Enterprises (CCJ Top 250, No. 13) is acquiring Tampa, Florida-based ReedTMS Logistics, an asset-light logistics provider and truckload carrier that offers a suite of freight brokerage and truckload solutions, for $112.4 million.
Reed's brokerage network, which accounts for 90% of the company's revenue, includes 19,000 active carriers and 70,000 approved carriers. The company serves more than 800 customers, but two-thirds of its business comes from the food and beverage industries.
ReedTMS will operate as a standalone business unit within Werner, and will report to the Werner Logistics segment. Its truckload business will report to Werner's Dedicated business unit with its Truckload Transportation Services segment.
"ReedTMS will elevate our logistics portfolio with new customers, by expanding and diversifying our industry verticals," said Werner Chairman, President and Chief Executive Officer Derek Leathers, adding that the acquisition brings Werner's brokerage business to roughly 50% contract. "Our brokerage business becomes significantly more relevant overnight."
From 2020 through 2021, brokerages were booming, but have been a tough place to do business with the spot market rates cratering.
"One of the things that really excited us about ReedTMS is their agility," Leathers said, "their ability to adapt to [market] changes is very impressive.”
