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

UPS today announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

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