Roadrunner Transportation Systems Inc. announced the closings of three transactions completing its divestiture of its truckload businesses, turning the company into a standalone less-than-truckload carrier.
This includes the sale of Rich Logistics and Integrated Services Inc. to an undisclosed strategic buyer, as well as the sale of Roadrunner Temperature Controlled to Laurel Oak Capital Partners.
It’s the end of a long road back started with the company’s near-collapse in 2017, after making more than 20 acquisitions from the time it went public in 2010 through 2015. The mostly truckload acquisitions affected the company’s service and reputation in the LTL market, and last year Roadrunner Freight lost $36.5 million, according to Journal of Commerce. With its pivot to focus primarily on LTL trucking, the LTL operation was “back in the black” by mid 2020.
These latest divestitures complete a reorganization that involved the sale of Roadrunner Intermodal Services (November 2019), Flatbed (December 2019), Prime Distribution (March 2020) and Stagecoach (April 2020). With the previously announced completion of the spin-off of Ascent Global Logistics. Roadrunner now consists solely of its less-than-truckload operations.
“With the actions announced today, we have completed our evolution from a troubled roll-up to a focused, national LTL carrier,” said Chris Jamroz, executive chairman of Roadrunner.
In addition, Paul Svindland, CEO of STG Logistics, has joined Roadrunner’s Board of Directors. Svindland most recently served as CEO of Celadon Group, one of North America’s largest asset-based truckload carriers. Prior to Celadon, Paul was chairman and CEO of Farren International, a private equity-backed ﬂatbed trucking company.