RRTS acquires YES Trans Inc. in the latest of several acquisitions
September 19, 2013 - LM Editorial
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  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.
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