Roadrunner Transportation Services acquires The James Brooks Company

Deal marks third acquisition made by RRTS in 2011

By ·

Non asset-based third-party logistics services provider Roadrunner Transportation Services (RRTS) said this week it has acquired all of the outstanding stock of The James Brooks Company for approximately $7.5 million.

The James Brooks Company is a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland, according to RRTS. The company primarily focuses on transporting various types of fresh produce, including citrus, vegetables, fruit, and nuts.

“The James Brooks acquisition substantially enhances the scale and critical mass of our drayage operations in key ports on the West Coast,” said Mark DiBlasi, President and CEO of RRTS, in a statement. “In addition, the company’s seasonality matches up well with our existing intermodal drayage business, which we believe will enhance our driver utilization and retention. We look forward to supporting and expanding James Brooks’ solid customer relationships and strong service record as we pursue continued growth in the business.”

For calendar year 2010, James Brooks generated approximately $12 million in revenues with operating margins in excess of 10 percent, said RRTS CFO Peter Armbuster. RRTS expects the acquisition to be accretive to its net earnings for the balance of 2011 and beyond.

RRTS officials were not available for additional comment at press time.

This week’s deal marks the third acquisition RRTS has made this year. In February, it acquired Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million. And in June it acquired Wichita, Kansas-based truckload services provider Bruenger Trucking Company. The sale price for Bruenger, according to Roadrunner officials, was roughly $10.6 million, coupled with an earn-out capped at $3 million.

Stifel Nicolaus analyst David Ross wrote in a research note that this deal while not in its core LTL segment, fits with [RRTS] management’s strategy of small asset-light tuck-ins, as over 80 percent of James Brooks drivers are owner-operators. He added that Brooks has between 57-70 trucks running (depending on season), and its equipment is fairly new and meets all the California state requirements for drayage operators.

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!

Hub Group Resources
Not Your Grandfather's Intermodal
Transportation of freight in containers was first recorded around 1780 to move coal along England’s Bridgewater Canal. However, "modern" intermodal rail service by a major U.S. railroad only dates back to 1936. Malcom McLean’s Sea-Land Service significantly advanced intermodalism, showing how freight could be loaded into a “container” and moved by two or more modes economically and conveniently. As with all new technologies, there were problems that slowed the growth, which influenced many potential customers to shy away from moving intermodal.
Click here to download
Latest Whitepaper
Warehouse Management Systems (WMS) / Inventory Management Technology: 6 Trends for the Modern Age
Here’s how the next generation of warehouse and inventory management systems are evolving to help logistics operations operate more efficiently and improve their bottom lines in our brave, new digital age.
Download Today!
From the March 2018 Logistics Management Magazine Issue
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage to meet evolving requirements and shifting operational constraints? We’ve rounded up insights from leading analysts to share tools that are available now as well as what’s on the horizon.
Reverse Logistics in the “Age of Entitlement”
Logistics Management’s Viewpoint on E-commerce: Leveraging available tools
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
Evolution of E-commerce: The possibilities of tomorrow
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage...
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...

2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...
Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...