Troubled trucking carrier Roadrunner Transportation Systems Inc. today unveiled a plan to split the company into two units as it continues to rebuild itself into a profitable venture after a 2018 accounting scandal.
The move will transform Roadrunner into two independent companies: Roadrunner Freight—a national less than truckload (LTL) carrier—and Ascent Global Logistics, a diversified global logistics provider, the Downers Grove, Illinois-based company said. The plan to spin off Ascent Global Logistics is expected to be completed in August 2020, pending approval by Roadrunner's board of directors and certain tax and legal considerations.
Following the move, Ascent will be headquartered in Belleville, Michigan, and will continue its business in domestic freight management, international freight forwarding, and expedited transportation services on the ground and in the air.
In leadership changes associated with the split, Tom Stenglein, who is currently the president of Ascent On-Demand and CFO of Ascent, will become President of Ascent Global Logistics Inc. Likewise, Frank Hurst, who has served as president of Roadrunner Freight since 2017, will become president of Roadrunner Transportation Systems Inc.
Roadrunner first rebranded its global solutions segment into Ascent Global Logistics in 2016, saying the unit would provide professional domestic freight management, international freight forwarding, and retail consolidation, as it remained a Roadrunner entity operating independently as a separate brand.
The company’s troubles began in 2018 when it was forced to restate its unrealistic 2016 earnings report. The firm also revealed that year that computer hackers had stolen data from company accounts. Since then, the company has sold off a long string of business units in an effort to rebuild as a lean LTL carrier. The divestitures included selling its Prime Distribution Services business to C.H. Robinson Worldwide Inc., its intermodal business unit to competitor Universal Logistics Holdings Inc., and its Stagecoach Cartage and Distribution dry van division to J.H. Rose Logistics LLC.