Subscribe to our free, weekly email newsletter!


RRTS acquires Central Cal Transportation

By Staff
November 05, 2012

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) continues to remain active on the acquisition front with today’s announcement that it has acquired all of the outstanding stock of Central Cal Transportation, a provider of intermodal transportation and related services from the Northern California region, for roughly $4 million plus an earnout.

Central Cal, said RRTS, primarily transports nuts, wine, and retail import products. And during the 2011 calendar year it generated about $19 million in revenues. RRTS said the acquisition is expected to be accretive to Roadrunner’s 2013 earnings. 

“The Central Cal acquisition substantially enhances the scale and critical mass of our drayage operations in the West Coast region,” said Mark DiBlasi, RRTS President and CEO, in a statement. “In addition, the seasonality of Central Cal’s freight mix complements our existing intermodal business, which we believe will enhance our driver utilization and retention. We look forward to supporting and expanding Central Cal’s strong customer relationships and service record as we pursue continued growth in the business.”

Stifel Nicolaus analyst David Ross wrote in a research note that the acquisition fits with Roadrunner’s typical acquisition strategy of buying companies with complementary services to its existing operation, keeping the management in place, and incentivizing them through earn-outs.  He added that Central Cal’s customer focus around nuts, wine, and retail imports diversifies Roadrunner’s West Coast intermodal business to make volumes less seasonal.

In August, RRTS acquired all of the outstanding capital stock of Clearwater, Minnesota-based D&E Transport, an asset-light flatbed carrier focused on food and agricultural products.  In February, the company announced it acquired all of the outstanding stock of Nashua, New Hampshire-based Capital Transportation Logistics (CTL), a transportation services management (TMS) services provider, for $6.25 million.

And in September 2011, 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.

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

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.

The market for supply chain management software continues to expand, highlighting the importance of software in today’s supply chains.

Amid the talk and coverage about things negatively impacting the trucking industry like increasing regulations, tight capacity, and equipment-related issues and challenges, there is one thing to always remember about the sector: it moves a lot of freight, make that more than a lot, actually.

In an effort to increase territorial coverage, improve transit time, and augment service quality in Brazil, UPS recently announced it has made significant service expansions with the opening of nine new operating facilities in the state of São Paulo.

Article Topics

News · 3PL · RRTS · All topics

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