RRTS acquires Indiana-based regional logistics provider ISI

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.

By ·

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has acquired Kokomo, Indiana-based regional logistics provider ISI.

The acquisition price was $13 million and financed with borrowings under Roadrunner’s Credit facility, according to RRTS officials.

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.

“In addition to adding capability to service customers in the Midwest, ISI brings a strong reputation for quality,” said Pat McKay, President of Roadrunner Truckload Logistics, in a statement. “ISI’s team, led by Mike Taylor, has done an excellent job building relationships with its customers through high service levels and creative solutions. We look forward to working with ISI’s team as we collectively pursue the growth opportunities available to the business.”

This is the third acquisition RRTS has made in 2014, following February’s acquisitions of Little Rock, Arkansas-based Rich Logistics, a provider of truckload and expedited services, and in March it all of the outstanding stock of Unitrans International Corporation, a leading high-quality, non-asset based provider of international logistics solutions based in Los Angeles.

RRTS has been and expects to continue to be active when it comes to making acquisitions. Since January 2006, it has made nearly acquisitions and company officials have told LM it looks for companies that are well-run and well-managed profitable businesses and non-asset or light-asset in their business model.

“Even though we acquire some companies with assets at times, we do look for companies that provide capacity that are actual carriers and are going to give us additional reach…or compliment existing resources as we build out our portfolio of services and are immediately accretive,” and RRTS executive told LM in a previous interview. “Integration is also key as we look for a very strong cultural fit between the management team we are acquiring and our management team. If that fit is not there, we will walk away from a deal; we have done that before.”

Stifel Nicolaus analyst David Ross wrote in a research note that Roadrunner targets small-to-medium sized bolt-ons, and said his firm believes the company has sought out a business with complementary culture and management that it expects to remain in place for at least the near-to-medium term.

“This small transaction size is under the radar of other acquisitive transportation/logistics companies at the moment, so we don’t believe there was much of a competitive bid process, which is good for Roadrunner in that was unlikely to overpay,” Ross wrote. “Assuming that Roadrunner sticks with its normal integration rubric, rolling the company into its service portfolio but leaving operations independent, integration costs and risks should be minimal, in our view.”


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!

Article Topics

All Topics
Latest Whitepaper
Identify Cost Savings with Real-Time Visibility
To offset the impact of late shipments, unreported delays and detention, shippers are increasingly requiring 100 percent visibility into the location and status of their freight.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

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...