Ryder announced on August 6, 2008 that it plans to acquire the assets of Gordon Truck Leasing, a Philadelphia truck leasing and commercial truck rental company. Terms were not disclosed.

With the acquisition, Ryder would acquire{readmore} Gordon’s fleet of approximately 430 full service lease units, 45 rental units, and 35 held-for-sale units. They would also obtain over 130 of Gordon’s contract customers.

Continued Growth and Expansion with Smaller Companies

The acquisition of Gordon Truck Leasing will continue Ryder’s growth strategy pattern. Within the past year Ryder acquired three truck leasing companies out of Florida, Massachusetts, and Canada. With acquiring Gordon Truck Leasing, Ryder, who is looking to gain more control in the channel, will be able expand its presence in the Mid-Atlantic region and continue the growth strategy of its full-service lease business. There’s a possibility Ryder will keep some of the five Gordon Truck Leasing locations, but for the most part it will recognize synergies by merging other business into existing Ryder facilities in the area.

Ryder’s acquisition of smaller leasing companies illustrates how they are currently approaching the “buy vs. build” dilemma. Adding on an extant customer base enables them to rapidly grow market share.

We anticipate Ryder’s pattern of acquiring smaller truck leasing companies will continue over the next several quarters as they continue to seek growth in a soft market.