We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Roadrunner sells off retail consolidation arm to C.H. Robinson for $225 million
newsworthy

Roadrunner sells off retail consolidation arm to C.H. Robinson for $225 million

January 28, 2020
DC Velocity Staff
No Comments

Roadrunner Transportation Systems Inc. is selling off yet another business unit in its effort to bounce back from an accounting scandal and return to profitability, announcing today that it has agreed to sell its Prime Distribution Services business to C.H. Robinson Worldwide Inc. for $225 million.

The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close by the end of the first quarter.

Plainfield, Indiana-based Prime Distribution Services provides retail consolidation solutions, with five food-grade warehouses in the U.S. Its team of retail supply chain staffers help clients achieve compliance with large U.S. retailer delivery and in-stock requirements. Currently part of Roadrunner's Ascent Global Logistics segment, the unit had revenue of $108.7 million for the year ended December 31, 2019.

Employing approximately 270 people, Prime operates fulfillment and distribution facilities totaling approximately 2.6 million square feet, and serves some 140 customers with distribution, fulfillment, and inventory management services, C.H. Robinson said. Once the deal closes, C.H. Robinson will integrate Prime Distribution Services into its North American Surface Transportation division and its Navisphere multimodal technology platform.

"Prime Distribution Services is a high-quality growth company that brings scale and value-added warehouse capabilities to our retail consolidation platform, adding to our global suite of services," C.H. Robinson CEO Bob Biesterfeld said in a release. "Prime has an outstanding track record of success, a talented and experienced team and a focus on delivering great value to its customers and carriers."

The maneuver is the latest effort by Downers Grove, Illinois-based Roadrunner to slash the company's size. The moves follow management stumbles at the company including being compelled in 2018 to restate its unrealistic 2016 earnings report, then admitting that computer hackers had stolen data from company accounts, also in 2018.

In 2019, the company sold its intermodal business unit to competitor Universal Logistics Holdings Inc. for $51.25 million, soon after unveiling plans to downsize its dry van business line, reducing the company's dry van tractor and trailer fleets by over 50% and laying off some 10% of the company's total workforce.

By selling its Prime Distribution Services line, the company will raise funds to pay down debt and invest in new directions, executives said.

"The divestiture of Prime Distribution Services is a unique opportunity for us to significantly improve our balance sheet by paying off all borrowings under our ABL and Term Loan Credit Facilities. We believe we are well positioned to execute our strategy of simplifying our portfolio by investing in our remaining Ascent Global Logistics, Active On-Demand and asset light LTL segments," Roadrunner CEO Curt Stoelting said in a release. "We also believe that our stronger balance sheet will enable us to pursue additional value-creation opportunities, such as incremental organic business expansion and tuck-in acquisitions. We remain committed to improving operating performance, generating attractive returns on invested capital and building long-term shareholder value."

We've entered an agreement to acquire Prime Distribution Services, further expanding the industry leading retail consolidation services for our customers. Learn more: https://t.co/tetaGhBuG1 pic.twitter.com/h3AP9tiHgW

— C.H. Robinson (@CHRobinson) January 28, 2020
Transportation Trucking Business Management & Finance
KEYWORDS C.H. Robinson Roadrunner Transportation Services
  • Related Articles

    Roadrunner sells off intermodal business unit for $51.25 million

    Roadrunner sells cold-chain logistics unit to courier firm for $95 million

    eBay sells off fulfillment arm to focus on online marketplace

Recent Articles by DC Velocity Staff

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

Werner invests in autonomous trucking firm TuSimple

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 11 21 thumb

Ocean Sector Shaping the Next Shipageddon

DCV-TV 4: Viewer Contributed
If you're a shipper, it's never good when a rep for an ocean carrier tells you, "You better sit down before you read this." We've been seeing astoundingly high increases in the ocean sector and they seem to have staying power. While the ocean carriers used blank sailings last year to tip the balance of supply and...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing