Werner Enterprises announced on Wednesday that it has completed the acquisition of FirstFleet and 11 strategically located properties in an all-cash transaction totaling $282.8 million. The company confirmed in the announcement that the transaction officially closed on Tuesday.

The acquisition adds approximately 2,400 tractors to Werner's dedicated transportation segment, bringing the segment's total fleet size to nearly 7,400 units. According to the announcement, the properties accounted for approximately $37.8 million of the total transaction price.

Werner Chairman and CEO Derek Leathers said the acquisition of FirstFleet comes "at an ideal time in the company's development." Against the backdrop of a prolonged downturn in the freight market across the industry, Werner noted that FirstFleet has maintained consistent profitable growth over the past four decades. The company has established long-term relationships with its top ten customers, with multi-year contracts averaging a duration of 17 years.

"By combining FirstFleet's expertise in complementary new verticals with our resources and nearly 5,000 dedicated transportation trucks, we will enhance our competitive position and accelerate profitable growth," Leathers said in the announcement. He added that the addition of FirstFleet strengthens Werner's market position, enabling it to better capitalize on growth opportunities as market conditions improve.

According to Werner, FirstFleet generates annual revenue exceeding $615 million and consistently contributes stable operating margins. Werner expects FirstFleet to have an immediate positive impact on its earnings, "with the earnings enhancement becoming more pronounced during the first two years following the transaction close as approximately $18 million in annualized synergies are progressively realized."

Werner stated that the merger makes the company the fifth-largest dedicated transportation carrier in the United States by power units. Additionally, the transaction strengthens the company's presence in more resilient market segments such as grocery and baked goods.

In recent years, Werner has continued to focus on expanding its truckload transportation services segment, as the dedicated transportation business within this segment features higher margins and longer contract durations. With the integration of FirstFleet, Werner expects its dedicated transportation revenue to grow by approximately 50%. FirstFleet will operate as a standalone business unit within Werner's truckload transportation services segment.

Privately held FirstFleet was founded in 1986 and is headquartered in Murfreesboro, Tennessee. Werner stated that as part of the transaction, FirstFleet's corporate headquarters and the majority of its management team will be retained.

FirstFleet co-owner Paul Wilson said the merger represents "an opportunity to create significant value for stakeholders by leveraging industry-leading technology." Wilson added: "By choosing to merge with Werner, we are joining an industry leader that takes pride in a tradition of deeply caring for its employees and customers."