Subscribe to our free, weekly email newsletter!


Roadrunner Transportation Services acquires The James Brooks Company

Deal marks third acquisition made by RRTS in 2011
By Jeff Berman, Group News Editor
August 02, 2011

Non asset-based third-party logistics services provider Roadrunner Transportation Services (RRTS) said this week it has acquired all of the outstanding stock of The James Brooks Company for approximately $7.5 million.

The James Brooks Company is a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland, according to RRTS. The company primarily focuses on transporting various types of fresh produce, including citrus, vegetables, fruit, and nuts.

“The James Brooks acquisition substantially enhances the scale and critical mass of our drayage operations in key ports on the West Coast,” said Mark DiBlasi, President and CEO of RRTS, in a statement. “In addition, the company’s seasonality matches up well with our existing intermodal drayage business, which we believe will enhance our driver utilization and retention. We look forward to supporting and expanding James Brooks’ solid customer relationships and strong service record as we pursue continued growth in the business.”

For calendar year 2010, James Brooks generated approximately $12 million in revenues with operating margins in excess of 10 percent, said RRTS CFO Peter Armbuster. RRTS expects the acquisition to be accretive to its net earnings for the balance of 2011 and beyond.

RRTS officials were not available for additional comment at press time.

This week’s deal marks the third acquisition RRTS has made this year. In February, it acquired Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million. And in June it acquired Wichita, Kansas-based truckload services provider Bruenger Trucking Company. The sale price for Bruenger, according to Roadrunner officials, was roughly $10.6 million, coupled with an earn-out capped at $3 million.

Stifel Nicolaus analyst David Ross wrote in a research note that this deal while not in its core LTL segment, fits with [RRTS] management’s strategy of small asset-light tuck-ins, as over 80 percent of James Brooks drivers are owner-operators. He added that Brooks has between 57-70 trucks running (depending on season), and its equipment is fairly new and meets all the California state requirements for drayage operators.

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

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

During this webcast attendees will learn about technology that is delivering real-time tracking on freight and putting an end to the all too common question of “Where’s My Brokered Load?”. Whether you’re a broker, 3PL, shipper, or carrier, find out how you can gain automated, TMS-integrated visibility on all your shipments.

FedEx recently took another step in its plans to acquire Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which it announced in early April. The company said it has “submitted the required filing to the European Commission to obtain regulatory clearance in connection with the intended recommended public cash offer all issued and outstanding ordinary shares in the capital of TNT Express.”

The American Trucking Associations last week praised Senator Deb Fischer (R-Neb.) for her bill that takes some positive steps towards alleviating the current environment regarding the truck driver shortage.

Global third-party logistics (3PL) services provider Kuehne+Nagel (KN) said this week it has entered into an agreement to acquire ReTrans Inc., a Memphis-based provider of multimodal transportation services.

Comments

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