Roadrunner Transportation Systems Inc., an acquisitive company that has diversified beyond its original core offering of long-haul, less-than-truckload transportation, said yesterday it had acquired Stagecoach Cartage and Distribution LP, a truckload and logistics provider serving the southwest U.S. and Mexico, for $35 million.
Based in El Paso, Texas, Stagecoach provides regional, intermodal, and over-the-road truckload services throughout the southwestern United States and Mexico. It also offers warehousing and transloading services through locations in South-Central and West Texas. The acquisition was financed through Roadrunner's credit line.
"The Stagecoach acquisition is Roadrunner's 34th since 2005, and its first since acquiring Active Aero Group last August. Active Aero was acquired in part because of its strong position in the U.S.-Mexico market.
The purchase continues to reduce reliance on long-haul LTL services. In 2006, long-haul LTL accounted for all of Roadrunner's revenues. In the first quarter of 2015, long-haul LTL accounted for 27 percent.
"Stagecoach's strong presence within the El Paso and Laredo markets, coupled with the company's Mexican operating authority, provides us with immediately realizable growth opportunities created by the accelerating demand within the region," said Mark DiBlasi, president and CEO of Cudahy, Wis.-based Roadrunner, in a statement.
Stagecoach generated revenues of approximately $34 million during the 12 months ended June 30, 2015, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of more than $7 million.
Roadrunner is an "asset-light" provider, meaning it controls its fleet utilization, but for the most part doesn't own the equipment or employ company drivers. The company believes the industry's pendulum has swung in favor of companies that control their own capacity, with those players increasingly taking market share and gaining pricing leverage.