Roadrunner Transportation Systems Announces Acquisition of Rich Logistics
CUDAHY, Wis. -- February 24, 2014
Roadrunner Transportation Systems, Inc. (NYSE: RRTS), announced today that it
had acquired Rich Logistics, a provider of truckload and expedited services
based in Little Rock, Arkansas. In addition, Roadrunner acquired Everett
Transportation Inc. and certain assets of Keith Everett (collectively,
“Everett”). The total enterprise value of the transaction was approximately
$48 million. Rich Logistics transports product throughout the United States
and Mexico utilizing a combination of independent contractors and employee
drivers. Everett is a contractor operating exclusively for Rich Logistics. The
acquisition was financed with borrowings under Roadrunner’s credit facility.
Mark DiBlasi, President and CEO of Roadrunner, said, “The acquisition of Rich
Logistics provides an excellent opportunity to expand our truckload offering
and broadens our access to freight going into and coming out of Mexico. Rich
Logistics’ superior service standards and strong reputation will allow us to
strengthen its existing customer relationships as well as cultivate new
relationships. Both Rich Logistics’ and Everett’s management teams will stay
in place to help achieve the growth opportunities that we collectively
“Rich Logistics’ operating network, service standards, and high quality fleet
are an excellent complement to our existing truckload services platform and
will provide immediate growth opportunities within the segment,” said Brian
van Helden, Roadrunner’s COO.
In 2013, Rich Logistics generated revenues of approximately $113 million. Rich
Logistics is expected to be accretive to Roadrunner’s earnings in 2014.
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 logistics, transportation management
solutions, intermodal solutions, freight consolidation, inventory management,
expedited services, international freight forwarding, customs brokerage, and
comprehensive global supply chain solutions. 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 Rich
Logistics and Everett acquisitions on expanding Roadrunner’s truckload
offering and operating network, Roadrunner’s ability to strengthen Rich
Logistics’ existing customer relationships and to cultivate new relationships,
the growth opportunities offered by the acquisition of Rich Logistics, the
growth of Rich Logistics’ business and Roadrunner’s expectation that Rich
Logistics will be accretive to Roadrunner’s earnings in 2014. 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.
Peter Armbruster, 414-615-1648
Chief Financial Officer
Vollrath Associates, Inc.
Marilyn Vollrath, 414-221-0210
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