Roadrunner Announces Sale of Its Intermodal Business to Universal Logistics Holdings, Inc.
November 05 2019 - 12:00PM
Business Wire
Roadrunner Transportation Systems, Inc. (“Roadrunner” or the
“company”) (NYSE: RRTS), a leading asset-right transportation and
asset-light logistics service provider, today announced the sale of
its Roadrunner Intermodal Services business to Universal Logistics
Holdings, Inc. (NASDAQ: ULH), based in Warren, Michigan, for $51.25
million in cash, subject to customary purchase price and working
capital adjustments.
Roadrunner Intermodal Services provides drayage and chassis
management services to transport freight between ocean ports, rail
ramps and shipping docks through 23 strategically located terminals
nationwide. The business had revenue of approximately $125 million
for the trailing 12 months ended September 30, 2019 and was part of
the company’s Truckload segment.
“The divestiture of Roadrunner Intermodal Services is another
step forward in our strategy to simplify our portfolio by focusing
on our value-added logistics and asset-light LTL segments to
improve our operating performance and returns on invested capital.
Universal Logistics is an established transportation and logistics
company that shares our dedication to customer service and is a
good fit for the intermodal services business,” said Curt
Stoelting, Chief Executive Officer of Roadrunner.
The company used the proceeds from the sale to repay finance
leases and debt associated with Roadrunner Intermodal Services and
pay transaction costs, with the remaining amount available for
general corporate purposes.
About Roadrunner Transportation Systems, Inc.
Roadrunner Transportation Systems is a leading asset-right
transportation and asset-light logistics provider offering a full
suite of services and solutions under the Roadrunner®, Active
On-Demand® and Ascent Global Logistics® brands. The Roadrunner
brand offers less-than-truckload and over-the-road truckload
services. Active On-Demand offers premium mission critical air and
ground logistics solutions. Ascent Global Logistics offers domestic
freight management, retail consolidation, international freight
forwarding and customs brokerage. For more information, please
visit Roadrunner’s websites, www.rrts.com and www.ascentgl.com.
About Universal Logistics Holdings
Universal Logistics Holdings, Inc. (“Universal”) is a leading
asset-light provider of customized transportation and logistics
solutions throughout the United States, and in Mexico, Canada and
Colombia. Universal provides its customers with supply chain
solutions that can be scaled to meet their changing demands and
volumes. Universal offers customers a broad array of services
across their entire supply chain, including truckload, brokerage,
intermodal, dedicated, and value-added services.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which relate to future events or performance.
Forward-looking statements include, among others, statements
regarding Roadrunner’s belief that the divestiture of Roadrunner
Intermodal Services is another step forward in its strategy to
simplify its portfolio by focusing on its value-added logistics and
asset-light LTL segments to improve its operating performance and
returns on invested capital. These statements are often, but not
always, made through the use of words or phrases such as “may,”
“will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,”
“ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,”
“opportunity,” and similar words or phrases or the negatives of
these words or phrases. These forward-looking statements are based
on Roadrunner’s current assumptions, expectations and beliefs and
are subject to substantial risks, estimates, assumptions,
uncertainties and changes in circumstances that may cause
Roadrunner’s actual results, performance or achievements to differ
materially from those expressed or implied in any forward-looking
statement. Such factors include, among others, risks related to the
restatement of Roadrunner’s previously issued financial statements,
the remediation of Roadrunner’s identified material weaknesses in
its internal control over financial reporting, the litigation
resulting from the restatement of Roadrunner’s previously issued
financial statements and the other risk factors contained in
Roadrunner’s SEC filings, including Roadrunner’s Annual Report on
Form 10-K for the year ended December 31, 2018. Because the risks,
estimates, assumptions and uncertainties referred to above could
cause actual results or outcomes to differ materially from those
expressed in any forward-looking statements, you should not place
undue reliance on any forward-looking statements. Any
forward-looking statement speaks only as of the date hereof, and,
except as required by law, Roadrunner assumes no obligation and
does not intend to update any forward-looking statement to reflect
events or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20191105005813/en/
Reputation Partners Marilyn Vollrath 414-376-8834
ir@rrts.com
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