Ryder System Inc. said it has acquired British truck leasing, rental, and maintenance firm Hill Hire plc for $252 million in cash.
The acquisition of Hill, which had been a wholly owned subsidiary of Lloyds Banking Group, will add about 4,000 heavy-duty vehicles to Miami-based Ryder's fleet, Ryder said. Of that, 2,000 will be used for full-service leasing operations and the remainder for rentals, Ryder said.
The acquisition is expected to add approximately $147 million in annual revenue to Ryder's Global Fleet Management Solutions (FMS) business segment and be accretive to Ryder's earnings in 2011, Ryder said. Once the transition and consolidation process is completed, the combined Ryder and Hill Hire business will operate under the Ryder name.
"The acquisition accelerates our growth strategy by expanding our fleet offering in the heavy-duty vehicle contract hire (full-service lease) and rental market, as well as our customer base in a sector that we have targeted for expansion," David Hunt, vice president and managing director, fleet management solutions, Ryder Europe, said in a statement.
Hunt said Hill Hire's heavy-duty vehicle fleet, which is 60 percent tractors, will complement Ryder's fleet of mostly light- and medium-duty trucks.