Roadrunner Transportation to acquire Prime Logistics
Roadrunner Transportation Systems, a leading asset-light transportation and logistics services provider, announced that it has entered into a definitive merger agreement to acquire all of the outstanding stock of Prime Logistics Corporation for approximately $97.5 million, consisting of $94.5 million in cash and $3.0 million in stock.
The parties have received regulatory approval for the transaction and expect to close on or before September 15, 2011, subject to customary closing conditions.
Prime is a non-asset based provider of logistics and freight consolidation services, with 2010 revenues of approximately $67.5 million. Prime leads its industry sector in providing value and service to its customers, which are predominately comprised of food producers who ship over one billion pounds of product to numerous retailers, distributors and warehouses on an annual basis.
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Prime's services are provided from state-of-the-art facilities, comprising over two million square feet and include freight consolidation, inventory management, warehousing, order fulfillment and related LTL and truckload services.
“This transaction is strategically beneficial for both companies,” Mark DiBlasi, President and CEO of Roadrunner, said. “Prime provides Roadrunner with enhanced logistics and consolidation capabilities to offer to our combined customer base. This differentiated offering will enhance Roadrunner's service capabilities with current customers. Furthermore, Roadrunner will be able to add significant value to Prime through the extension of our service capabilities and offerings.”
DiBlasi further commented, “Prime is an outstanding fit for Roadrunner and directly in line with our acquisition and expansion criteria. We are pleased to have been selected as Prime's partner for the next phase of their growth.”
Peter Armbruster, CFO of Roadrunner, thinks the acquisition will help the company perform better in the public trading forum.
“We expect the Prime transaction to be immediately accretive to our earnings per share and in the range of $0.16 to $0.18 in 2012,” Armbruster said. “As we continue to execute our strategic growth plan, our expanded credit facility will provide us with the necessary financial flexibility.”
Edited by Kevin Scarpati
