Werner Enterprises (NYSE:WERN) announced Wednesday the acquisition of Tennessee-based carrier FirstFleet for approximately $282.8 million, a strategic pivot designed to bolster its higher-margin dedicated division.
The deal, which includes $245 million in cash and a maximum $35 million earnout, adds more than $615 million in annual revenue and catapults Werner to the position of the fifth-largest dedicated provider in the U.S.
The acquisition comes as the Omaha-based logistics giant navigates a persistent freight recession that has strained its one-way truckload and logistics segments.
In contrast, Werner’s dedicated fleet has remained a relative bright spot, and the addition of FirstFleet—with its 2,400 tractors and 11,000 trailers—is expected to increase Werner’s dedicated revenue by roughly 50%.
The transaction also includes 11 real estate properties valued at $37.8 million, funded through cash on hand and Werner's existing credit facility.
Derek Leathers, Werner’s chairman and CEO, noted that the merger allows the company to penetrate new, durable verticals such as grocery and baked goods, where FirstFleet maintains deep-rooted customer relationships.
Werner anticipates $18 million in annual synergies and expects the deal to be immediately accretive to earnings per share.
FirstFleet will continue to operate as a separate business unit from its Murfreesboro headquarters, with its current management team largely remaining in place.