Roadrunner Transportation Systems Announces Acquisition of G.W. Palmer Logistics
CUDAHY, Wis.--(BUSINESS WIRE)-- Roadrunner Transportation Systems, Inc. (NYS: RRTS) announced today that it has acquired all of the outstanding equity of G.W. Palmer Logistics, LLC ("G.W. Palmer"), a non-asset truckload service provider based in Batesville, Arkansas. The purchase price was approximately $2.5 million, plus an earn-out capped at $2.8 million. The acquisition was financed with borrowings under Roadrunner's credit facility.
Mark DiBlasi, President and CEO of Roadrunner, said, "The G.W. Palmer acquisition enhances our truckload service offering in the South due to its concentration in temperature controlled products. G.W. Palmer's management team will remain in place and are excited about the growth opportunities we collectively envision. We look forward to supporting and expanding G.W. Palmer's strong customer relationships and service record as we expand the business."
During calendar year 2012, G.W. Palmer generated approximately $20 million in revenues. G.W. Palmer is expected to be accretive to Roadrunner's earnings in the near term.
About Roadrunner Transportation Systems, Inc.
Roadrunner is a leading asset-light transportation and logistics service provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload and logistics, transportation management solutions, intermodal solutions, and domestic and international air. For more information, please visit Roadrunner's website, www.rrts.com.
Safe Harbor Statement
This release contains forward-looking statements that relate to future events or performance, including statements regarding the impact of the G.W. Palmer acquisition on Roadrunner's truckload brokerage operations in the South region, the growth of G.W. Palmer's business, and Roadrunner's expectation that G.W. Palmer will be accretive to Roadrunner's earnings in the near term. These statements reflect Roadrunner's current expectations, and Roadrunner does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond Roadrunner's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the integration of acquired companies, competition in the transportation industry, the impact of the current economic environment, Roadrunner's dependence upon purchased power, the unpredictability of and potential fluctuation in the price and availability of fuel, the effects of governmental and environmental regulations, insurance in excess of prior experience levels, and other "Risk Factors" set forth in Roadrunner's most recent SEC filings.
Roadrunner Transportation Systems, Inc.
Chief Financial Officer
Vollrath Associates, Inc.
KEYWORDS: United States North America Arkansas Wisconsin
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