Roadrunner Transportation Systems Announces Acquisition of Central Cal
CUDAHY, Wis. -- November 05, 2012
Roadrunner Transportation Systems, Inc. (NYSE: RRTS) announced today that it
has acquired all of the outstanding stock of Central Cal Transportation
(“Central Cal”), a provider of intermodal transportation and related services
from the Northern California region. Central Cal transports primarily nuts,
wine and retail import products. The purchase price was approximately $4
million plus an earnout. The acquisition was financed with borrowings under
Roadrunner's credit facility.
Mark DiBlasi, President and CEO of Roadrunner, said, “The Central Cal
acquisition substantially enhances the scale and critical mass of our drayage
operations in the West Coast region. In addition, the seasonality of Central
Cal's freight mix complements our existing intermodal business, which we
believe will enhance our driver utilization and retention. We look forward to
supporting and expanding Central Cal's strong customer relationships and
service record as we pursue continued growth in the business.”
During calendar year 2011, Central Cal generated approximately $19 million in
revenues. Central Cal is expected to be accretive to Roadrunner's earnings in
About Roadrunner Transportation Systems, Inc.
Roadrunner is a leading asset-light transportation and logistics service
provider offering a full suite of solutions, including customized and
expedited less-than-truckload, truckload and logistics, transportation
management solutions, intermodal solutions, and domestic and international
air. For more information, please visit Roadrunner's website, www.rrts.com.
Safe Harbor Statement
This release contains forward-looking statements that relate to future events
or performance, including statements regarding the impact of the Central Cal
acquisition on the scale and critical mass of Roadrunner's drayage operations
in the West Coast region, the impact of the Central Cal acquisition on
Roadrunner's driver utilization and retention, the growth of Central Cal's
business, and Roadrunner's expectation that Central Cal will be accretive to
Roadrunner's earnings in 2013. These statements reflect Roadrunner's current
expectations, and Roadrunner does not undertake to update or revise these
forward-looking statements, even if experience or future changes make it clear
that any projected results expressed or implied in this or other company
statements will not be realized. Furthermore, readers are cautioned that these
statements involve risks and uncertainties, many of which are beyond
Roadrunner's control, which could cause actual results to differ materially
from the forward-looking statements. These risks and uncertainties include,
but are not limited to, risks related to the integration of acquired
companies, competition in the transportation industry, the impact of the
current economic environment, Roadrunner's dependence upon purchased power,
the unpredictability of and potential fluctuation in the price and
availability of fuel, the effects of governmental and environmental
regulations, insurance in excess of prior experience levels, and other "Risk
Factors" set forth in Roadrunner's most recent SEC filings.
Roadrunner Transportation Systems, Inc.
Chief Financial Officer
Vollrath Associates, Inc.
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