Subscribe to our free, weekly email newsletter!


RRTS acquires YES Trans Inc. in the latest of several acquisitions

By Jeff Berman, Group News Editor
September 19, 2013

Another week, another acquisition for non asset-based third-party logistics services provider Roadrunner Transportation Systems (RRTS), or so it seems.

The Cudahy, Wisc.-based company announced yesterday it has acquired the assets of Salisbury, Massachusetts-based refrigerated truckload service provider YES Trans Inc. for roughly $1.2 million, net of cash acquired, plus an earn out capped at $1.1 million.

RRTS said that YES mainly moves meat and produce between the Northeast and the Midwest and Southeast, adding that during calendar year 2012, YES generated roughly $5 million in revenues and is expected to be accretive to Roadrunner’s near term earnings.

“The YES acquisition enhances our refrigerated truckload service offering in the Northeast due to its concentration in temperature controlled products,” said Brian Van Helden, President of Roadrunner’s Truckload Logistics division, in a statement.  “We will incorporate the YES operations into our existing Massachusetts refrigerated location and are excited about the growth opportunities we collectively envision. We look forward to supporting and expanding YES’ strong customer relationships and service record as we continue to grow the business.”

This acquisition follows last week’s news that RRTS acquired has all of the outstanding equity of Batesville, Arkansas-based G.W. Palmer Logistics LLC, a non-asset truckload service provider for roughly $2.5 million with an earn-out capped at $2.8 million.

As previously reported, RRTS continues to make acquisitions at a fervent rate, with these deals following recently announced acquisitions of Marisol International LLC, a non asset-based supply chain-critical, provider of international logistics services late July and the Southeast drayage division of Transport Corporation of America (TA Drayage), a provider of intermodal transportation and related services in the Southeast, in August.

RRTS President and CEO Mark DiBlasi told LM in a recent interview that the company intends to remain active on the acquisition front.

“We have a profile we use for [acquisitions],” he said. “Since January 2006, we have made a total of [26] acquisitions and look 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. 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.”

Robert W. Baird and Co. analyst Ben Hartford wrote in a research note that this acquisition complements RRTS’ existing truckload services offering, of which 75 percent is refrigerated.
“[The] YES Trans purchase is small, consistent with the two other acquisitions RRTS has made since the equity offering; and we believe RRTS remains focused on identifying and executing additional acquisitions of slightly larger magnitude in coming months,” Hartford wrote.

The equity offering referenced by Hartford was made in August and is comprised of a public offering of 4,300,000 shares of common stock, which tops its previously announced offering of 3,500,000 shares.

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).


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!

Recent Entries

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

Article Topics

News · 3PL · RRTS · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA