Subscribe to our free, weekly email newsletter!


3PL News: RRTS completes acquisition of Prime Logistics Corporation

By Jeff Berman, Group News Editor
September 02, 2011

Non asset-based third-party logistics services provider Road Runner Transportation Services (RRTS) said it has officially closed its acquisition of the outstanding stock of Prime Logistics Corporation for roughly $97.5 million.

This is the latest in a series of acquisitions RRTS has made in recent months.

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 recent 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

Seasonally-adjusted (SA) for-hire truck tonnage in July headed up 1.3 percent on the heels of a 0.8 percent increase in June. The ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, was 133.3 in July, which outpaced June’s 132.3 by 0.8 percent, and was up 2.8 percent annually.

Volumes for the month of July at the Port of Long Beach (POLB) and the Port of Los Angeles (POLA) were mixed, according to data recently issued by the ports. Unlike May and June, which saw higher than usual seasonal volumes, due to the West Coast port labor situation, July was down as retailers had completed filling inventories for back-to-school shopping.

With a 0.8 cent decrease, this week’s average price per gallon is $3.835 and stands as the lowest price since hitting $3.844 the week of November 25, 2013.

LTL carriers are rapidly investing in expensive, on-dock, three-dimensional size measurement capturing machinery, and they are hoping one day of being able to more accurately charge shippers rates based on the actual dimensions of their shipments, rather than the traditional weight-and-distance-based formula that has been in effect since the 1930s or even earlier.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) recently reported that its Freight Transportation Services Index (TSI) dipped 0.9 percent from May to June.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA