Werner Enterprises has acquired an 80% equity ownership stake in ECM Transport Group for $142.4 million.
With a 2020 revenue of $108 million, ECM consists of ECM Transport and Motor Carrier Services of Pennsylvania. The regional truckload carriers operate nearly 500 trucks and 2,000 trailers in their network of eight terminals and 18 drop yard facilities.
The acquisitions expands Werner’s footprint in the Mid-Atlantic, Ohio and Northeast regions; expands the company’s fleet size by 6%; compliments the company’s existing terminal footprint.
“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, Werner’s chairman, president and CEO, in a press release.
He added: “We expect this transaction to be accretive in year one and anticipate cost synergies through integrated management of our combined fleet.”
Under the agreement, Werner retains an exclusive option to buy the remaining 20% of ECM Transport Group after a period of five years.
Existing ECM leadership (including founder and President Ed Meier), drivers and non-driver associates will remain in place, and the company is retaining the ECM brand to ensure smooth integration and high driver retention, company officials said.
ECM will operate as a standalone business unit within Werner.