Roadrunner Transportation Systems has acquired certain assets of the U.S. Southeast drayage division of Transport Corp. of America, an intermodal transportation provider in the Southeast, for about $1.2 million.
The acquisition was financed with cash on hand from Roadrunner, No. 15 on the JOC’s list of the Top 25 Less-Than-Truckload Carriers. TA Drayage is expected to be accretive to Roadrunner’s earnings in 2013. In 2012, the division generated approximately $20 million of revenue.
TA Drayage primarily transports imports and exports for steamship lines and intermodal marketing companies from the ports of Charleston, S.C.; Norfolk, Va.; and Savannah, Ga. The division also services the rail ramps of Atlanta; Memphis, Tenn.; and Birmingham, Ala.
In a written statement, Ben Kirkland, president of Roadrunner Intermodal Services, said: “The TA Drayage acquisition enhances the scale and density of our intermodal services in the Southeast, complementing our asset-light service offering with the addition of over 100 independent contractors. We will absorb the TA Drayage operations into our existing Southeast RRIS locations, and we look forward to supporting and expanding TA Drayage’s strong customer relationships and service record as we pursue continued growth in the business.”
Roadrunner recently announced a public offer of 4.3 million shares of common stock, consisting of 1.5 million primary shares and 2.8 million secondary shares from selling stockholders. The deal supports Roadrunner’s acquisitions, such as this acquisition of TA Drayage, which was “low risk,” as well as the Wando and Adrian Carrier acquisitions in May 2013, according to Stifel Nicolaus. The financial services firm also believes that Roadrunner’s management has more acquisitions lined up for this year.
Roadrunner’s profit and revenue soared in the second quarter of 2013, boosted by previous acquisitions and the company’s continued LTL initiatives to expand into new geographic regions and build density.