Subscribe to our free, weekly email newsletter!

3PL news: Road Runner Transportation Services to acquire Prime Logistics

By Jeff Berman, Group News Editor
August 26, 2011

Non asset-based third-party logistics services provider Road Runner Transportation Services (RRTS) continued its aggressive rate of acquisitions this week, announcing it has entered into a definitive merger agreement to acquire the outstanding stock of Prime Logistics Corporation for roughly $97.5 million.

The acquisition is expected to close on or before September 15, subject to customary closing conditions, according to RRTS officials.

As a non asset-based provider of logistics and freight consolidation, Prime had roughly $67.5 million in 2010 revenues. Its customers are primarily made up of food producers who ship more than 1 billion pounds of product to retailers, distributors, and warehouses. Prime has more than 2 million square-feet of facilities, with its service menu comprised of freight consolidation, inventory management, warehousing, order fulfillment, and less-than-truckload and truckload services.

“Prime’s service offerings are designed to give customers the cost benefit of shipping truckloads into Prime, with Prime shipping outbound freight to end destinations through consolidation with other shippers’ products, which Prime does through its warehouse locations by shipping multiple customers’ goods to the same address or location,” said RRTS President and CEO Mark DiBlasi on a conference call.

Prime is able to achieve cost savings for its customers while exceeding the requirements imposed upon it by those customers, which include large retailers like Wal-mart, Costco, and Target, among others.

Other benefits of Prime’s service offerings for shippers cited by DiBlasi include shipping cost savings, reduced transit times, more effective inventory management, order fill rates in the 96 percent-to-100 percent range, as well as help shippers reach specific delivery dates required by large mass merchandisers they do business with.

This deal follows recent acquisitions made by RRTS, including: February’s acquisition of Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million; May’s acquisition of Wichita, Kansas-based truckload services provider Bruenger Trucking Company; and July’s acquisition of The James Brooks Company is a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland.

“RRTS is capable of folding in small acquisitions that can improve scale, geographic reach, and service capabilities,” wrote Robert W. Baird & Co. analyst Jon Langenfeld in a research note. “We look for RRTS to acquire one to three targets annually that could each add $30-50 million in revenue…while expanding density, most likely within its TL Brokerage and TMS segments.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.

At a certain point, it seems like the ongoing truck driver shortage cannot get any worse, right? Well, think again, because of myriad reasons we could well be in the very early innings of a game that is, and continues, to be hard to watch. That was made clear in a report issued by the American Trucking Associations (ATA), entitled “Truck Driver Analysis 2015.”

Coming off of 2014, which in many ways is viewed as a banner year for freight, it appears that some tailwinds have firmly kicked in, as 2015 enters its official homestretch, according to Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics (SOL) Report at last week’s CSCMP Annual Conference in San Diego. The SOL report is sponsored by Penske Logistics.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA