Werner Enterprises (NASDAQ:WERN) outlined details of its acquisition of dedicated trucking operator FirstFleet during a business update conference call, describing the transaction as a strategic step to expand its dedicated transportation platform and increase the company’s scale and network density, particularly in the eastern U.S.
Transaction overview and closing
Management said Werner closed the acquisition on January 27, 2026. Werner is purchasing 100% of the equity in the FirstFleet operating entity for $245 million and has also entered into a separate agreement to purchase certain owned real estate assets for $37.8 million. The deal was funded using cash on hand and borrowings under Werner’s existing revolving credit facility, along with the assumption of certain capital leases.
FirstFleet profile and combined scale
Werner Chairman and CEO Derek Leathers said FirstFleet was founded in 1986 and is headquartered in Murfreesboro, Tennessee. He emphasized alignment between the two companies on safety and service, as well as FirstFleet’s 100% company driver base and lower-than-average industry turnover.
Leathers said FirstFleet generated more than $615 million in annual revenue for the twelve months ended September 30, 2025, operating approximately 2,400 tractors and 11,000 trailers, supported by more than 2,650 drivers and serving customers in roughly 130 sites nationwide.
On a combined basis, Werner said trailing 12-month revenue (ended September 30, 2025) would increase from approximately $3.0 billion to approximately $3.6 billion. Management said the combined truckload transportation services fleet will operate more than 9,800 trucks, including roughly 7,365 dedicated trucks and approximately 2,480 one-way truckload trucks.
Shift toward dedicated and network footprint
Werner highlighted the acquisition’s impact on its business mix and strategy. Management said the combined company’s revenue mix would tilt further toward dedicated, with dedicated increasing from roughly 43% of total revenues to approximately 52% on a combined basis. One-way truckload and logistics were cited at approximately 22% and 24% of total revenues, respectively.
Leathers said the deal accelerates Werner’s longer-term focus on dedicated trucking, which management described as a $30 billion+ addressable market characterized by contract-based relationships and higher barriers to entry.
Werner also pointed to the geographic fit between the two networks, saying the combination creates nearly 300 dedicated locations across 37 states, with significant density in the eastern half of the U.S. Management said increased density can support higher asset utilization, more flexible customer service capabilities, improved fixed-cost absorption, and enhanced purchasing power.
During Q&A, Leathers said Werner still views one-way as “about the size that we think it should be,” while noting the one-way fleet also provides surge capacity to support dedicated operations. He added that the transaction allows Werner to pursue dedicated growth while preserving flexibility in the one-way fleet as market conditions improve.
Customer mix and end-market exposure
Management described FirstFleet’s customer base as a key attraction, noting long tenures among top accounts. Leathers said FirstFleet’s top 10 customers have an average tenure of 17 years, and three of its top four customers have been with FirstFleet for more than 25 years.
Werner said the combined company remains weighted toward retail, with retail representing about 60% of the portfolio. Manufacturing and industrial represents about 19%, and food and beverage about 15%. Management highlighted FirstFleet’s experience in grocery, bakery, and corrugated packaging, including what it described as non-commoditized corrugated box solutions and specialized packaging offerings.
Financial impact, synergies, and integration considerations
Executives repeatedly emphasized that the acquisition is immediately accretive to EPS. In response to analyst questions, CFO Chris Wikoff said the acquisition is expected to be double-digit accretive to EPS pre-synergies. He also said management views the purchase valuation as attractive, characterizing it as a “mid-single-digit” total enterprise value multiple based on management’s forward-looking estimates of adjusted EBITDA, while declining to provide a specific multiple.
Werner expects approximately $18 million in annual synergies, which it expects to be largely implemented within 18 months of closing. Wikoff said the synergy estimate is weighted more toward cost synergies than revenue synergies. He outlined three main categories:
- Procurement and purchasing power, including items such as tires, brake pads, oil filters, windshields, fuel, software, and insurance
- Operating efficiencies, including maintenance opportunities where Werner’s terminal footprint could reduce over-the-road and third-party maintenance costs
- Revenue-related opportunities, including improved backhaul value, surge capability, and cross-selling potential
Wikoff said the synergy figure is a midpoint and suggested a range of roughly ±10%. He also said the synergy estimate is not necessarily exhaustive and could evolve as Werner becomes more familiar with the business.
On leverage, Wikoff said Werner expects “peak” leverage in the low two times range including pro forma synergies, and that the company expects to prioritize debt reduction. He described FirstFleet as having strong free cash flow conversion and a lower run rate of capital expenditures than what Werner typically sees, calling the transaction cash flow accretive.
Management also discussed integration considerations such as driver pay alignment and branding. Leathers said FirstFleet’s pay philosophy and safety-first culture are similar to Werner’s, and he emphasized that expected synergies are not based on changing driver pay. On branding, he said no final decision has been made; for now, FirstFleet’s name is not changing, and Werner will evaluate the issue collaboratively with FirstFleet and customers over time.
About Werner Enterprises (NASDAQ:WERN)
Werner Enterprises, Inc, founded in 1956 by Clarence L. “Chris” Werner, is a leading transportation and logistics provider based in Omaha, Nebraska. The company began as a one‐truck operation and has since grown into one of North America’s largest carriers, offering an array of services to support diverse supply chains.
Werner’s core business activities include full truckload dry van services, dedicated contract carriage, intermodal transport and brokerage solutions. The company also provides value-added services such as warehousing, freight management and fleet maintenance through its network of terminals and service centers.
Featured Stories
- Five stocks we like better than Werner Enterprises
- Do not delete, read immediately
- NEW LAW: Congress Approves Setup For Digital Dollar?
- “Fed Proof” Your Bank Account with THESE 4 Simple Steps
- A U.S. “birthright” claim worth trillions – activated quietly
- The Crash Has Already Started (Most Just Don’t See It Yet)
