Acquisition of ECM Transport Group
Terms
Financing &
Closing
Strategic
Rationale
WERNER
Transaction Highlights
80% ownership stake in ECM Transport Group (ECM)
Exclusive option to buy remaining 20% ownership stake five years following transaction close
$142.4M (funded with cash on hand and new borrowing)
Finalized a new $100M loan that matures in May 2024 with BMO Harris Bank N.A., with an all-in interest rate of 1.3%
Closed July 1, 2021
Expected to be accretive in year one
Expands terminal, fleet and driver footprint in the strategic Mid-Atlantic, Ohio and Northeast regions
Network of 8 terminals and 18 drop yard facilities complementary to existing Werner terminal infrastructure
Increased exposure to high velocity, shorter length of haul segments of 200-300 miles
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Adds high-quality talent and increases Werner fleet size by more than 6%
Addition of over 500 highly-skilled and tenured drivers
Extremely low driver turnover
Fleet of nearly 500 trucks and 2,000 trailers
Synergies expected through combined management of fleet
Combines similar cultures focused on safety and customer service excellence
Highest standards of driver training and safe operations
Continuous investment in technology and IT infrastructure to enhance on-time delivery performance
Shared values of picking winning customers with high expectations, establishing long-term mutual service and revenue
objectives, and delivering best-in-class performance to stabilize volume and minimize churn
Existing ECM leadership (including founder and President Ed Meier), drivers and non-driver associates will remain in place
and we are retaining the ECM brand to ensure smooth integration and high driver retention
ECM will operate as a standalone business unit within Werner and their financial results will be reported in Werner's One-
Way Truckload unit within Truckload Transportation Services
WE KEEP AMERICA MOVINGⓇ
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