02 July 2011
Miami-based Ryder System bought a UK-based commercial truck leasing company for about $252 million to expand its contract hire business in Europe.
Ryder said the deal will add about $147 million a year in revenue and also increase its profits this year.
The purchase of Hill Hire includes about 4,000 heavy duty vehicles, 300 employees and 13 vehicle maintenance facilities in the United Kingdom. Roughly 60 percent of the vehicles are tractors, which will help Ryder round out its fleet in the United Kingdom, the company said.
UK bank Lloyds sold its Bradford, England-based Hill Hire unit to dispose of non-core assets. The UK government helped Lloyds during the credit crunch, and regulators now want it to clean up its finances.
Ryder said it has invested $44 million in its truck rental business in Europe in the past two years. It operates the business largely in the United Kingdom and Germany.
Ryder System stock hit a new 52-week high June 30 at $55.95 on the New York Stock Exchange, with shares up more than 4 percent so far this year.
The company reported $118.2 million in net earnings last year, up 91 percent from the previous year. Revenue from continuing operations was $5.14 billion, up 5 percent. For this year, the company has projected revenue of about $5.7 billion.
Ryder Chairman Gregory Swienton was WorldCity’s Distinguished Speaker for 2010. For the article on his remarks, click here.
For more information on Ryder, visit www.ryder.com.