RRTS acquires R&M Transportation and Sortino Transportation

Non asset-based 3PL remains active on the acquisition front.

By ·

If there is a blueprint for acquiring companies in the freight transportation and logistics sectors, non asset-based third-party logistics services provider Roadrunner Transportation Systems (RRTS) may have the blueprint.

The Cudahy, Wisconsin-based company recently announced it has acquired substantially all of the operating assets and business of Omaha, Nebraska-based truckload services providers R&M Transportation and all of the outstanding stock of Sortino Transportation for $24.4 million and an earn-out capped at $5 million.

RRTS officials said that R&M and Sortino mainly move refrigerated product through the United States, leveraging a combination of independent contractors and a fleet of company-owned trailers. They added that in 2001 R&M and Sortino cumulatively generated revenues of roughly $64.5 million.

“The acquisition of R&M and Sortino expands our refrigerated capacity in key lanes and broadens our customer base,” said RRTS President and CEO Mark DiBlasi in a statement. “In addition, R&M and Sortino’s Midwest presence enables us to more effectively cross-sell our truckload services because of their superior service and solid, long-term customer relationships. R&M and Sortino’s principal former owners and experienced management team will remain in place and are excited about the growth opportunities we collectively envision.”

In June, RRTS acquired all of the outstanding capital stock of CTW Transport, a Peabody, Mass.-based truckload carrier specializing in refrigerated food products, for $7.5 million.

Sortino and R&M mark the ninth and tenth acquisitions, respectively, 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.

Stifel Nicolaus analyst David Ross wrote in a research note that while RRTS has its roots in LTL it may be emulating the Landstar System, as it is focused on growing capacity both organically and via acquisition—but without buying the trucks.

“Landstar has long characterized itself as a “capacity provider” rather than a trucking company, and we believe Roadrunner sees itself the same way,” wrote Ross. “Both of these asset-light companies want to control capacity without owning (most of) the assets, which we believe is the better business model heading into what we believe is a tightening supply/demand dynamic in the U.S. trucking industry than a traditional broker like C.H. Robinson that relies solely on other companies’ spare capacity.”


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

3PL · RRTS · All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...