Roadrunner Transportation Systems said will buy freight Prime Logistics for $97.5 million, as one the fastest growing less-than-truckload carriers last year makes its fifth acquisition in 2011.
Roadrunner President and CEO MarkDiBlasi said the acquisition will help expand Roadrunner's reach in the market for freight consolidation and inventory management. Prime Logistics, a non-asset based distributor of food from producers to retailers, distributors and warehouses, had $67.5 million in revenue in 2010.
Prime Logistics said it shipped 1 billion pounds of food in 2010 through about 2 million square feet of facility space. Roadrunner said it will keep Prime Logistics' management in place and that Prime customers have access to additional transportation management services, cheaper LTL services and extended truckload capacity.
Roadrunner, which will pay $94.5 million in cash for Prime and $3 million in stock, will expand an existing credit facility to $240 million to finance the transaction.
Roadrunner reported a $7.4 million net profit in the second quarter, as the trucker’s total revenue leaped 30.4 percent to $208.3 million. The company bought an intermodal specialist earlier this month; a Midwest truckload carrier in June; a refrigerated trucker in March; and a drayage operator in February.