Ryder Completes Cardinal Logistics Deal, Adding 2,900 Power Units to Dedicated Fleet

Ryder System said on February 1, 2024, that it had completed its acquisition of Cardinal Logistics, a dedicated transportation and logistics provider based in Concord, N.C.

The deal added about 200 operating locations, 2,900 power vehicles and 3,400 professional drivers to Ryder's dedicated transportation business, according to the company. FleetOwner reported that Cardinal also brought more than 7,000 registered trailers.

What Cardinal does

Cardinal was founded in 1997 by Tom Hostetler, its CEO, and Vin McLoughlin, its chairman. Both spent the first eight years of their careers at Ryder, and both were joining Ryder as part of the transaction.

The company's business includes dedicated fleets, complex route structures, brokerage, last-mile delivery and contract logistics. It serves customers in consumer packaged goods, omnichannel retail, grocery, building products, automotive and industrial markets.

Cardinal ranked No. 50 on the FleetOwner 500 For-Hire list, while Ryder ranked No. 22, FleetOwner reported. With Cardinal, Ryder's integrated logistics operation would run nearly 10,000 vehicles, according to the publication. Across all its businesses, Ryder manages nearly 260,000 commercial vehicles.

Integration plans

Ryder said it would fully integrate Cardinal into its operations, with FleetOwner reporting that full integration was planned for 2025. Ryder said it expected the acquisition to be accretive to earnings in 2025.

"With complementary contractual services in many of the same industries, we gain greater economies of scale, and we can provide even more flexibility for transportation networks when seasonality and fluctuating demand inhibit the continuous use of resources," said Steve W. Martin of Ryder.

For Cardinal's founders, the sale closed a loop. "We've come full circle, back to where we started, and that was purposeful," Hostetler said.

McLoughlin pointed to the company's long relationships. "We care deeply about our people and our customers, many of whom have been with us for decades," he said.

What it means for drivers and fleets

For Cardinal's roughly 3,400 drivers, the February 2024 closing meant moving into one of the largest dedicated fleets in the country, with Ryder planning to fully integrate the business. Martin's comments pointed to the appeal of scale: a larger network gives Ryder more room to shift trucks and drivers among customers whose volumes rise and fall at different times.

For competing dedicated carriers, the deal created a larger rival in contract trucking. Shippers in grocery, retail and building products gained a larger provider able to cover more locations from a single contract.