RRTS acquires Adrian Carriers and Wando Trucking

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) continues to stay true to its theory of growth by acquisition, saying yesterday it has brought two new companies into the fold: Adrian Carriers, a Milan, Illinois-based logistics service provider focusing on container management and intermodal, and Wando Trucking, a Charleston, South Carolina-based provider of intermodal services and related services in the Southeast.

By ·

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) continues to stay true to its theory of growth by acquisition, saying yesterday it has brought two new companies into the fold: Adrian Carriers, a Milan, Illinois-based logistics service provider focusing on container management and intermodal, and Wando Trucking, a Charleston, South Carolina-based provider of intermodal services and related services in the Southeast.

The purchase price for Adrian was roughly $14.2 million, plus and an earn-out capped at $6.5 million, and the purchase price for Wando was roughly $9 million, with that acquisition financed with borrowings under Roadrunner’s credit facility, according to RRTS officials.

These acquisitions mark the ninth and tenth acquisitions RRTS has made going back to 2011 and they mark the first ones since its December 2012 public offering of 3,500,000 shares of common stock at a price of $17.25 per share to the public.

RRTS officials were not available for comment at press time. The company is announcing first quarter earnings later today.

Adrian Carriers: RRTS said that Adrian manages the transaction of containerized import and export freight throughout the U.S. and is at the forefront of technical development of container management systems and software. It added that in 2012 Adrian generated revenues of roughly $32.5 million and that Adrian is expected to be accretive to Roadrunner’s 2013 earnings.

“The acquisition of Adrian expands our TMS capabilities within intermodal services and container management,” said Mark DiBlasi, President and CEO of Roadrunner, in a statement. “In addition, Adrian’s service offering, combined with its superior reputation, enables us to cross-sell our current intermodal services. Gary Adrian and his team will remain in place and are excited about the growth opportunities we collectively envision.”

Stifel Nicolaus Analyst David Ross wrote in a research note that the acquisition of Adrian Carriers by RRTS could serve as a launching pad from which the company can get bigger in the international container management business.

“We continue to view Roadrunner as a company that plans to grow through any type of economic environment over the next few years, and its acquisitions recently have been small bolt-ons with relatively low-risk integrations, which we believe are better than larger deals,” wrote Ross.

Wando Trucking: RRTS said Wando mainly moves imports and exports, including raw rubber, building materials, paper, and plastics from the ports of Charleston, South Carolina, and Savannah, Georgia. During 2012, RRTS said Wando generated roughly $13.0 million in revenues, and it said Wando is expected to be accretive to Roadrunner’s earnings in 2013.

Robert W. Baird & Co. Analyst Ben Hartford wrote in a research note that Wando operates a fleet of roughly 110 power units and noted that Wando will compliment Roadrunner’s February 2011 acquisition of Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million.


About the Author

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. 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
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management market, and in marked contrast to 2016, paints a rosier outlook for career placement and advancement.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...