Ryder System, Inc. (NYSE:R), a prominent player in supply chain, transportation, and fleet management solutions, has announced a definitive agreement to acquire Pit Stop Fleet Service.

Financial specifics of the acquisition have not been disclosed. The acquisition will enhance Ryder's Torque by Ryder retail mobile maintenance services, driving significant growth for the product.

Based in Venice, Florida, Pit Stop provides mobile commercial fleet maintenance services, including battery, tire, and transmission repairs, preventative maintenance, and breakdown assistance.

The deal is projected to add approximately $24 million in gross revenue to Ryder's business by 2025, contributing to earnings growth.

Ryder expects to finalize the transaction by August 1, pending customary closing conditions.

"With our complementary retail mobile maintenance fleet services across diverse industries and markets, we now have even greater economies of scale and offer unparalleled flexibility for fleets requiring swift maintenance services," said Ryder's President of Fleet Management Solutions, Tom Havens.

With this acquisition, Ryder's retail mobile maintenance services will now be available in 140 markets across 20 states, including Alabama, Arizona, Florida, and Texas. There are plans to extend these services to additional states later in 2024.

Launched in the summer of 2023, Torque by Ryder will now have around 200 technicians. These technicians will provide extensive maintenance services for various vehicles, including commercial trucks, delivery vans, refrigerated vehicles, and emergency response vehicles.

Ryder held $234 million in cash and equivalents as of March-end.

Price Action: R shares traded higher by 0.11% at $128.89 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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