Roadrunner Transportation Systems Announces Acquisition of A&A Express
CUDAHY, Wis. -- November 12, 2012
Roadrunner Transportation Systems, Inc. (NYSE: RRTS), announced today that it
has acquired all of the outstanding stock of A&A Express (“A&A”), a provider
of truckload services based in Brandon, South Dakota, for a total enterprise
value of approximately $24.0 million, plus an earn-out capped at $2.5 million.
A&A transports primarily refrigerated product throughout the United States
utilizing a combination of independent contractors and employee drivers. The
acquisition was financed with borrowings under Roadrunner's credit facility.
Mark DiBlasi, President and CEO of Roadrunner, said, “The acquisition of A&A
expands our refrigerated capacity in key lanes and broadens our customer base.
In addition, A&A's Midwest presence enables us to more effectively cross-sell
our truckload services because of their superior service and solid, long-term
customer relationships. A&A's principal former owners will remain in place and
are excited about the growth opportunities we collectively envision.”
“A&A's operating network and high quality fleet are an excellent complement to
our existing Truckload Services platform and will provide immediate growth
opportunities in our refrigerated offering,” said Brian van Helden, President
of Roadrunner's Truckload & Logistics business segment.
In 2011, A&A generated revenues of approximately $39.3 million. A&A is
expected to be accretive to Roadrunner's earnings in 2013.
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 A&A
acquisition on expanding capacity and broadening Roadrunner's customer base,
the impact of the A&A acquisition on Roadrunner's cross-selling opportunities
and its operating network, the growth of A&A's business and Roadrunner's
expectation that A&A 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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