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
Outsourcing the Indirect Supply Chain
This in-depth whitepaper takes you through the journey that Smith & Nephew - a global research, development and manufacturing company of medical devices and products - underwent when initially looking for a provider to manage their tool cribs and eventually decided on an end-to-end supply chain management firm. Outsourcing white papers, SDI medical device manufacturing
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
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
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo