Saia acquires Robart Transportation, expands truckload brokerage and logistics presence

Multiregional less-than-truckload (LTL) carrier Saia said this week it has acquired truckload and brokerage services provider Robart Transportation Inc. and its subsidiary The RL Services Group LLC.

By ·

Multiregional less-than-truckload (LTL) carrier Saia said this week it has acquired truckload and brokerage services provider Robart Transportation Inc. and its subsidiary The RL Services Group LLC.

Saia officials said that the purchase price was roughly $7.8 million, as well as an earnout subject to the performance of the acquired companies in 2013. They added that the company plans to rebrand Robart under the Saia name in the fourth quarter.

Established in 1981, Duluth, Georgia-based Robart had $12 million in revenue in 2011. Its Robart Transportation group focuses on truckload and brokerage services, including expedited/time critical delivery offerings, full-service cross-dock and consolidation management, and guaranteed services, among others. And its RL Services Group provides various supply chain and logistics services, including mode, fleet, and operations analysis, carrier selection, fleet management, and data mining capabilities, among others.

Robart has roughly 40 employees and about 80 percent of its business is done on the truckload brokerage side, with the remaining 20 percent on the logistics side. Its customer base includes some major shippers, including Delta, AT&T, and Coca-Cola.

In an interview with LM, Saia President and CEO Rick O’Dell explained that as an asset-based LTL, Saia has not really had a professional logistics offering or truckload services, save for a partnership for a small amount of overflow truckload freight in the backhaul market.

“What we were really looking to do was to diversify our portfolio of offerings to our customer base,” he said. “While this is a small acquisition it is strategic in that it really expands our service offerings.”

With Saia and Robart roughly 15 miles apart from each other in Georgia, O’Dell said the close proximity makes the opportunities for things like cross-marketing to customers easier. But more importantly, he pointed out, what that Saia was looking for a company with strong operations and management.

And he said what Saia really wanted to do was buy a company with strong management and base of business and subsequently leverage it over the Saia customer business base for a period of time.

“When you look at these non-asset based companies, it is the service capabilities that they have and the leadership in a ‘people’ business,” said O’Dell. “The most important thing was that the management team was talented and wanted to stay with the company. It is growing at a double-digit level from a revenue growth standpoint and has an 89 operating ratio.”

Stifel Nicolaus analyst David Ross wrote in a research note that this is a “good acquisition” in that Saia bought a small, profitable company at a fair price and is keeping management in place, with the leverage coming from cross-selling services both from Saia customers to Robart and Robart customers to Saia. 

 


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

brokerages · Logistics · LTL · Saia · Truckload · All Topics
Latest Whitepaper
Managing Global Transportation: How NVOCCs can operate more profitably
Global transportation isn’t getting any easier to manage. With new rules and regulations to learn, new compliance requirements to adhere to, and new customers and business partners to onboard, navigating the complexities of the global market can be difficult for any company. To fully leverage their global supply chains, firms need a robust, global transportation management system that helps them navigate this ever-changing environment.
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