Universal acquires Roadrunner Intermodal Services
Universal acquires competitor in the midst of Roadrunner’s restructuring to create fleet of 2,500 tractors
Universal Logistics Holdings, Inc. (NASDAQ: ULH) has acquired Roadrunner Intermodal Services, LLC, Morgan Southern, Inc., Wando Trucking, LLC, and Central Cal Transportation, LLC (collectively, "Roadrunner Intermodal") from Roadrunner Transportation Systems, Inc. (NYSE: RRTS).
Roadrunner Intermodal is a nationwide drayage provider, servicing major port and rail locations throughout the United States. Operating a fleet of over 700 tractors, Roadrunner Intermodal services a broad range of customers utilizing a mix of company-owned and owner-operator provided capacity.
For the trailing 12-month period ended September 30, 2019, Roadrunner Intermodal reported total operating revenues of $125 million.
The deal is expected to give Universal an estimated fleet of over 2,500 tractors, operating from 49 terminals throughout the United States. Universal believes it can produce future annual revenues in excess of $500 million.
Universal anticipates that Roadrunner Intermodal will operate as a subsidiary of Universal Intermodal, Inc.
"The acquisition of Roadrunner Intermodal is extremely exciting for us," stated Jeff Rogers, Universal's Chief Executive Officer. "Roadrunner Intermodal has been a strong competitor over the years, servicing several of the same markets as Universal. We see a great deal of opportunity to integrate these two best-in-class drayage providers, while adding a significant amount of additional capacity to our network. I'm excited to get to work with the talented people at Roadrunner Intermodal and continue delivering outstanding service to the customers they support."