Roadrunner Transportation Services acquires The James Brooks Company

Deal marks third acquisition made by RRTS in 2011

By Jeff Berman · August 2, 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
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. Contact Jeff Berman

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!

Latest Whitepaper
Reduce Order Processing Costs by 80%
Sales order automation software will seamlessly transform inbound emailed and printed purchase orders into electronic sales orders that can be automatically processed into your ERP system with 100% accuracy.
Download Today!
From the June 2016 Issue
In the wildly unstable ocean cargo carrier arena, three major consortia are fighting for market share, with some players simply hanging on for survival. Meanwhile, shippers may expect deployment shifts as a consequence of the Panama Canal expansion.
WMS Update: What do we need to run a WMS?
Supply Chain Software Convergence: Synchronization Realized
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Optimizing Global Transportation: How NVOCCs Can Use Technology to Operate More Profitably
Global transportation isn't getting any easier to manage, especially for non-vessel operating common carriers (NVOCCs). Faced with uncertainties like surcharges—but needing to remain competitive when bidding against other providers—NVOCCs need the right mix of historical data, data intelligence, and technology support to make quick and effective decisions. During this webcast you'll learn how Bolloré Transport & Logistics was able to streamline its global logistics and automate contract management.
Register Today!
EDITORS' PICKS
Details Key to Cross-border Ease
Ever-changing regulations are making it risky for U.S. companies engaged in cross-border trade...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo