728 banner ad
220 banner ad

Roadrunner to Sell its Prime Distribution Services Business to C.H. Robinson

| January 29, 2020

The business had revenue of $108.7 million for the year ended December 31, 2019

Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (NYSE: RRTS), a leading asset-right transportation and asset-light logistics service provider, today announced it has signed a definitive agreement for the sale of its Prime Distribution Services business to C.H. Robinson Worldwide, Inc. (Nasdaq: CHRW) for $225 million in cash, subject to customary purchase price adjustments. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close by the end of the first quarter.

Prime Distribution Services, headquartered in Plainfield, Indiana, provides a comprehensive suite of retail consolidation solutions, with five food grade warehouse facilities strategically located across the nation and a team of retail supply chain experts dedicated to helping clients achieve compliance with large U.S. retailer delivery and in-stock requirements. The business had revenue of $108.7 million for the year ended December 31, 2019 and is part of the company’s Ascent Global Logistics segment.

“The divestiture of Prime Distribution Services is a unique opportunity for us to significantly improve our balance sheet by paying off all borrowings under our ABL and Term Loan Credit Facilities. We believe we are well positioned to execute our strategy of simplifying our portfolio by investing in our remaining Ascent Global Logistics, Active On-Demand and asset light LTL segments. We also believe that our stronger balance sheet will enable us to pursue additional value-creation opportunities, such as incremental organic business expansion and tuck-in acquisitions. We remain committed to improving operating performance, generating attractive returns on invested capital and building long-term shareholder value,” said Curt Stoelting, Chief Executive Officer of Roadrunner.

“We have great respect for C.H. Robinson, its management team and employees. We know the C.H. Robinson team shares our commitment to customers and is dedicated to providing quality logistics services that help customers operate and grow their business,” added Stoelting.

Oppenheimer & Co. Inc. acted as financial advisor and Debevoise & Plimpton LLC served as legal advisor to Roadrunner on the transaction.

Category: Featured, General Update, Management, News

Comments are closed.