William B. Cassidy, Senior Editor | Aug 06, 2012 11:23AM EDT
Roadrunner Transportation Systems acquired two refrigerated truckload carriers and expanded its credit facility to pave the way for more acquisitions.
The Cudahy, Wis.-based carrier said Friday it purchased R&M Transportation and Sortino Transportation, both located in Omaha, Neb., for $24.4 million.
The two companies, which operate using networks of owner-operators and company-owned trailers, had about $64.5 million in combined revenue in 2011.
“The acquisition of R&M and Sortino expands our refrigerated capacity in key lanes and broadens our customer base,” said Mark DiBlasi, president and CEO.
Roadrunner, which has less-than-truckload and truckload operations, is expanding its truckload, intermodal and logistics business through multiple acquisitions.
The carrier is expanding its LTL operations as well, opening two terminals in the Northeast in May to complement a New Jersey terminal it opened in 2011.
Roadrunner spent $208 million on acquisitions in the first six months of 2012, including $70 million in the second quarter, according to its earnings statement.
In June, Roadrunner acquired refrigerated truckload carrier CTW Transport in Peabody, Mass. Roadrunner has purchased nine companies in the past year.
Those acquisitions boosted Roadrunner’s revenue in the second quarter 26.1 percent from a year ago to $262.6 million and to $499.5 million in the first half.
“Truckload revenues grew by $42.3 million, or 61.6 percent, from the prior year,” DiBlasi said. Acquisitions accounted for $36.7 million of that increase.
In the quarter, the carrier’s net earnings rose 37.3 percent from a year ago to $10.2 million. For the first half, net profit was up 53.2 percent, reaching $18.1 million.
Roadrunner is one of several other transportation companies pushing ahead with acquisitions to expand service portfolios and capacity and to add truck drivers.
The largest transportation transaction proposed so far this year is UPS’s $6.6 billion cash bid for Netherlands-based rival TNT Express, which runs through Aug. 31.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc.
