Ryder To Purchase Saunders System For $100 Million
BIRMINGHAM, Ala. (AP) _ Directors of Birmingham-based Saunders System Inc., have agreed to sell the truck-leasing company to Ryder System Inc. for about $100 million.
Ryder, operator of the nation’s largest truck leasing and rental company, will acquire all outstanding shares of Saunders common and preferred stock at $12.50 a share, making Saunders a wholly owned subsidiary of Ryder, the companies announced Thursday.
″It’s our understanding at this point that Saunders will be totally blended into Ryder and that the Saunders name would no longer carry forth,″ said Ronald T. Sorrow, executive vice president for marketing.
Some of Saunders’ truck maintenance facilities and freight terminals duplicate what Ryder already has in place, Sorrow said. As a result, the merger will mean some facilities will close for each company, he told the Birmingham News.
Saunders, which is based in the Birmingham suburb of Mountain Brook, employs about 2,100 people nationwide, and has 138 truck maintenance facilities servicing more than 8,000 vehicles in the United States and Canada.
The company posted a $5.1 million profit last year on sales of $271 million.
Saunders, which was established as a car rental business in 1916 in Omaha, Neb., phased out auto rentals after World War II to concentrate on truck leasing.
Ryder is No. 1 in truck leasing, renting and auto carriage, operating a fleet of 86,000 vehicles. Ryder is also among the industry leaders in jet maintenance, inventory-support and insurance-management services.