RRTS acquires Central Cal Transportation

By Staff
November 05, 2012 - LM Editorial

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) continues to remain active on the acquisition front with today’s announcement that it has acquired all of the outstanding stock of Central Cal Transportation, a provider of intermodal transportation and related services from the Northern California region, for roughly $4 million plus an earnout.

Central Cal, said RRTS, primarily transports nuts, wine, and retail import products. And during the 2011 calendar year it generated about $19 million in revenues. RRTS said the acquisition is expected to be accretive to Roadrunner’s 2013 earnings. 

“The Central Cal acquisition substantially enhances the scale and critical mass of our drayage operations in the West Coast region,” said Mark DiBlasi, RRTS President and CEO, in a statement. “In addition, the seasonality of Central Cal’s freight mix complements our existing intermodal business, which we believe will enhance our driver utilization and retention. We look forward to supporting and expanding Central Cal’s strong customer relationships and service record as we pursue continued growth in the business.”

Stifel Nicolaus analyst David Ross wrote in a research note that the acquisition fits with Roadrunner’s typical acquisition strategy of buying companies with complementary services to its existing operation, keeping the management in place, and incentivizing them through earn-outs.  He added that Central Cal’s customer focus around nuts, wine, and retail imports diversifies Roadrunner’s West Coast intermodal business to make volumes less seasonal.

In August, RRTS acquired all of the outstanding capital stock of Clearwater, Minnesota-based D&E Transport, an asset-light flatbed carrier focused on food and agricultural products.  In February, the company announced it acquired all of the outstanding stock of Nashua, New Hampshire-based Capital Transportation Logistics (CTL), a transportation services management (TMS) services provider, for $6.25 million.

And 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.

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Article Topics

News · 3PL · RRTS · All topics

About the Author

Jeff Berman, 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.


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