Skip to content
Search AI Powered

Latest Stories

Werner buys truckload carrier to expand into Mid-Atlantic, Ohio, and Northeast

$142.4 million deal for ECM Transport Group supports service for e-commerce supply chains and forward deployment of inventory, analyst says.

ECM-Screen-Shot-2021-07-02-at-1.25.21-PM.png

Transportation and logistics provider Werner Enterprises Inc. is expanding its footprint in the Mid-Atlantic, Ohio, and Northeast regions, announcing Thursday that it will acquire an 80% ownership stake in the regional truckload carrier ECM Transport Group for a purchase price of $142.4 million.

Omaha, Nebraska-based Werner also retains an exclusive option to buy the remaining 20% of ECM after a period of five years. For that price, the company gains possession of Cheswick, Pennsylvania-based ECM’s two units—ECM Transport and Motor Carrier Services of Pennsylvania (MCS)—which together operate nearly 500 trucks and 2,000 trailers in their network of 8 terminals and 18 drop yard facilities.


That large scale will have an impact even on a company of Werner’s size, where it is set to boost Werner’s overall fleet by more than 6% and increase its coverage for regional short-haul freight in those geographic markets.

“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.”

Werner often cites a commitment to investing in its “5Ts + S strategy,” which includes trucks, trailers, talent, terminals, and technology, as well as sustainability.

The company has made a number of strategic moves in recent months to position itself within the industry, in 2020 extending its last-mile service into Canada and launching a technology and innovation arm. More recently, Werner sold off its freight forwarding division to focus on its North American logistics business and bought an ownership stake in the autonomous trucking technology company TuSimple.

Investors applauded the latest move, saying the ECM price tag was fair and its network would expand Werner’s existing routes.

“Management had clearly messaged an openness to bolt-on deals and landed a solid strategic/financial fit in ECM,” Garrett Holland, a senior research analyst with Baird Equity Research, said in a release. “The deal is nicely accretive to financial results… and the company’s competitive position, but manageable in size, which minimizes integration risk.”

According to Baird, the new freight and geographic coverage are complementary to Werner’s existing footprint and increasingly important to e-commerce supply chains and forward deployment of inventory.

The Latest

More Stories

Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less

Featured

retail store tech AI zebra

Retailers plan tech investments to stop theft and loss

Eight in 10 retail associates are concerned about the lack of technology deployed to spot safety threats or criminal activity on the job, according to a report from Zebra Technologies Corp.

That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.

Keep ReadingShow less
Mobile robots, drones move beyond the hype

Mobile robots, drones move beyond the hype

Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.

That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.

Keep ReadingShow less
warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less