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RRTS acquires Mass.-based CTW Transport

By Jeff Berman, Group News Editor
June 05, 2012

Growing through acquisition is nothing new for non asset-based third-party logistics services provider Roadrunner Transportation Systems (RRTS)

The company announced this week it has acquired all of the outstanding capital stock of CTW Transport, a Peabody, Mass.-based truckload carrier specializing in refrigerated food products.

RRTS officials said the purchase price was roughly $7.5 million plus an earnout, and noted that for 2012, CTW expects to generate revenues of approximately $15 million.  They were not available for further comment at press time.

“The acquisition of CTW broadens the service offerings within our Truckload & Logistics business segment and expands our refrigerated capacity and customer base,” said Mark DiBlasi, CEO of Roadrunner, in a statement. “CTW’s former owner will remain in place and is excited about the growth opportunities we collectively envision.”

RRTS added that CTW is complementary to the company’s Truckload & Logistics platform, coupled with the fact that RRTS is looking forward to serving CTW’s long-term customer base and accelerate its growth and geographic expansion.

This transaction marks the eighth acquisition RRTS has made going back to August 2010. In April, it acquired D&E Transport, an asset-light flatbed carrier focused on food and agricultural products, and in February it acquired Capital Transportation Logistics, a transportation services management (TMS) services provider. 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.

Robert W. Baird & Co. analyst Ben Hartford wrote in a research note that CTW mainly serves customers in the southeast and operates a 30-truck fleet, with the majority operated by independent contractors.

The analyst added that more acquisitions in the future are likely for RRTS, as his firm estimates RRTS has about $65 million in borrowing capacity remaining under its revolving credit facility, which provides further capacity to facilitate acquisitions.

About the Author

Jeff Berman headshot
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. .(JavaScript must be enabled to view this email address).


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