RRTS acquires Mass.-based CTW Transport
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.
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