Roadrunner purchases R&M, Sortino operations
Roadrunner Transportation Systems Inc (NYSE: RRTS) has acquired substantially all the operating assets and business of R&M Transportation and all the outstanding stock of Sortino Transportation, providers of truckload services based in Omaha NE, for about $24.4 million, plus an earn-out capped at $5 million.
R&M and Sortino transport primarily refrigerated product throughout the United States using a combination of independent contractors and a fleet of company-owned trailers. Roadrunner also announced that it has amended and expanded its credit facility to $295 million to provide enhanced liquidity and future growth capital. Under terms of the amended credit facility, Roadrunner modified limits and terms and obtained a reduction in interest rates of approximately 100 basis points.
Mark DiBlasi, president and chief executive officer of Roadrunner, said, “The acquisition of R&M and Sortino expands our refrigerated capacity in key lanes and broadens our customer base. In addition, R&M and Sortino’s Midwest presence enables us to more effectively cross-sell our truckload services because of their superior service and solid, long-term customer relationships. R&M and Sortino’s principal former owners and experienced management team will remain in place and are excited about the growth opportunities we collectively envision.”
“R&M’s and Sortino’s independent contractor business model and trailer capacity are an excellent complement to our existing Truckload & Logistics platform and will provide immediate growth opportunities in our refrigerated offering,” said Brian van Helden, president of Roadrunner’s Truckload & Logistics business segment.
In 2011, R&M and Sortino together generated revenues of about $64.5 million. Both firms are expected to be accretive to Roadrunner’s earnings in 2012.
Roadrunner is an asset-light transportation and logistics service provider offering customized and expedited less-than-truckload, truckload and logistics, transportation management, intermodal systems, and domestic and international air services. For more information, visit www.rrts.com.