Werner Enterprises has closed on the acquisition of an 80% equity ownership stake in ECM Transport Group (ECM) for a purchase price of $142.4 million. Through the agreement, Werner also retains an exclusive option to buy the remaining 20% of ECM after a period of five years.
With 2020 revenues of $108 million, ECM consists of ECM Transport and Motor Carrier Services of Pennsylvania, which are regional truckload carriers that operate nearly 500 trucks and 2,000 trailers in their network of eight terminals and 18 drop yard facilities.
“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,” Derek Leathers, chairman, president and CEO of Werner Enterprises, said. “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. We expect this transaction to be accretive in year one and anticipate cost synergies through integrated management of our combined fleet.”
The merger expands Werner's footprint in the Mid-Atlantic, Ohio, and Northeast regions while increasing exposure to the 200- to 300-mile length of haul segment. The acquisition also increases Werner's fleet size by more than 6%.
Werner added that existing ECM leadership, including founder and President Ed Meier, drivers and non-driver associates will remain in place. ECM will operate as a standalone business unit within Werner, and its financial results will be reported in Werner’s One-Way Truckload unit within Truckload Transportation Services.
“We are excited to join the Werner team and look forward to continued growth as we leverage our collective strengths to serve our existing and new customers at even higher levels,” Meier said. “We are standing by our existing customers and will continue to provide them with excellent service. Werner shares our passion for delivering value and continually creating personal and professional opportunities for our accomplished team of professional drivers and non-driver associates.”
