RRTS acquires Capital Transportation Logistics
February 27, 2012
Non asset-based third-party logistics services provider Roadrunner Transportation Services (RRTS) continues to remain active on the acquisition front, announcing last week it has acquired all of the outstanding stock of Nashua, New Hampshire-based Capital Transportation Logistics (CTL), a transportation services management (TMS) services provider.
The sale price, according to RRTS officials, was $6.25 million and was financed with borrowings under RRTS’ credit facility. RRTS officials were not available at press time for additional comment.
CTL, which had roughly $6 million in 2011 net revenues, mainly focuses on TMS services in the less-than-truckload (LTL) market, as well as truckload brokerage, freight bill, and audit payment services. RRTS said that CTL customers use a Web-based system that allows clients to optimize carrier selection, dispatch and track shipments, generate invoices, create custom reports, and perform improvement analysis.
“The acquisition of CTL broadens the service offerings within our TMS business segment and expands our critical mass, freight density, and customer base in the Northeast,” said Mark DiBlasi, CEO of Roadrunner, in a statement. “CTL has built solid customer relationships with mid-sized and large shippers by providing robust, user-friendly technology solutions, access to consistently competitive rates, and an ability to drive continuous operating improvements.”
This transaction marks the fifth acquisition has made. In September, it acquired Prime Logistics Corporation, a non-asset based provider of logistics and freight consolidation. In February 2011 it acquired Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million, and in May 2011 it acquired Wichita, Kansas-based truckload services provider Bruenger Trucking Company; and in July 2011 it acquired The James Brooks Company, a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland.
“This deal is the kind of deal we like to see management making, as it fits within the company’s strategy of targeting smaller, asset-light/non-asset-based tuck-in acquisitions that complement the company’s existing service offerings,” wrote Stifel Nicolaus analyst David Ross in a research note. “TMS is a good business, and we believe the acquisition to be a net positive for Roadrunner. While small, we believe the CTL deal is a net positive for Roadrunner, as it helps build-out the company’s footprint in the Northeast, and as TMS tends to be quite ‘sticky’ with customers, especially as those customers integrate their operations deeper within the systems and service.”
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