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.



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

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

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.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA