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

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

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