Skip to content
Search AI Powered

Latest Stories

Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Roadrunner Announces Divestitures

Strategic Transformation Into Standalone National LTL Carrier is Complete

Roadrunner Announces Divestitures

Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (Pink: RRTS) today announced the recent closings of three transactions completing Roadrunner’s divestiture of all truckload segment businesses. This includes the sale of Rich Logistics and Integrated Services, Inc. (“ISI”) to an undisclosed strategic buyer, as well as the sale of Roadrunner Temperature Controlled (“RRTC Holdings, Inc.”) to Laurel Oak Capital Partners.

“With the actions announced today, we have completed our evolution from a troubled roll-up to a focused, national LTL carrier. We are eternally grateful to our team for the long hours and hard work through the prolonged period of transition,” said Chris Jamroz, Executive Chairman of Roadrunner.


These 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, Inc. (“Ascent”), Roadrunner now consists solely of its less-than-truckload operations.

Paul Svindland Joins Board of Directors

Contemporaneous with the Ascent spin-off, Paul Svindland, CEO of STG Logistics, has joined Roadrunner’s Board of Directors. Paul 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 leading, private equity backed flatbed trucking company.

Donald C. Brown and Scott L. Dobak remain as independent directors on Roadrunner’s Board and Christopher L. Doerr has moved over to the Ascent Global Logistics Board.

“With deep experience in the logistics and transportation sector, Paul will no doubt lend invaluable advice and perspective to our Board and executive leadership team as we enter Roadrunner’s next chapter,” said Jamroz.

New Credit Facility

Simultaneously with the completion of the Ascent spin-off, Roadrunner’s existing senior secured credit facility with BMO Bank Harris, N.A. has been terminated, and the company has entered into a new $45.0 million senior secured asset-based credit facility with Crystal Financial. Roadrunner’s divestitures and the spin-off of Ascent have reduced the company’s balance sheet liabilities by approximately $400 million, leaving the company with a net cash position.

“We enter this new stage of Roadrunner with the healthiest balance sheet in the company’s history,” said Frank Hurst, President of Roadrunner Transportation Systems.

Roadrunner Freight Update

Additionally, Frank Hurst and the Roadrunner management team have provided an update on business performance and strategy to date.

“In Q4 2019, we made a deliberate shift in our LTL strategy to focus on customers and drivers, instead of short-term profitability. This change in approach led every team member to commit to a new mantra, Ship It Like You Own It,” said Hurst. “It also required operational investments in Q4 2019 and Q1 2020, generating average losses of approximately $4 million per month. However, we dramatically improved transit times and launched a quality campaign that resulted in drastic reductions of delivery exceptions. With clearly improved service levels, our sales have continued to grow and enabled our team to onboard business with several new national accounts. Despite highly depressed volumes in March and April from COVID-19, we were able to return to growth in May and posted our first positive EBITDA month in three years, albeit a very modest level.”

Year-to-date, the company has increased the Independent Contractor count by more than 100 drivers and has achieved the lowest 12-month turnover in recent history. The company has also launched a new analytical tool of driver performance metrics called RoadPRO to promote safety, service and operational results within the fleet.

“We plan to continue prioritizing service levels over profitability for the foreseeable future and will take advantage of our strong balance sheet to continuously redeploy profits generated into new technology, continuous lane enhancement and an improved driver and team member experience,” Hurst adds. “Our Ship It Like You Own It mantra embodies how we treat customers’ freight, and it is gratifying to see that our customers are noticing.”

As previously announced, Roadrunner Freight recently opened new facilities in Riverside, CA on July 22 and in Philadelphia on August 3 that offer significant enhancements to the company’s nationwide LTL network. A new Chicago service center, with double the capacity of the current Chicago facility, will also open later this month.

“We have seen COVID-driven disruptions in pockets of our network in June and July, despite our focus on quality service. This is partially due to large growth in e-commerce volume, which created facility and staffing constraints in a few markets. Our new facilities are already making a positive impact and any service issues experienced will be rectified in the near future. I appreciate our customers’ patience as we make the necessary changes to support these increased volumes of freight,” said Hurst.

“We are thrilled to be a standalone business and are grateful to our customers, business partners and team members who have stuck with us through our transformation,” continued Hurst. “I am proud to say we have never been as strongly positioned for the future as we are today.”

The Latest

More Stories

VARGO® announces several vendor partnerships and client expansions in Q3 2024

Dublin, Ohio (November 19, 2024) — VARGO®, a leading provider of material-handling systems integration, warehouse execution software and equipment solutions, has announced several new vendor partnerships and customer advancements that are helping them to create efficiencies and empower fulfillment.

VARGO® and Tompkins Robotics have signed a mutual partnership, designating VARGO® as an authorized integrator of the technology. “Tompkins is an obvious choice in partner for us,” said Bart Cera, CEO. “Their robotics solutions are conducive to a weightless, continuous flow as well as being modular and quickly deployable. Their solutions have the ability to shrink or grow with the size of our customer’s operation which will allow us to utilize it often and in many different merchandise categories.”

Keep ReadingShow less

Featured

Seegrid joins Open Source Robotics Alliance

Seegrid RS1 AMR utilizing ROS 2 to perform manipulation task in industrial facility.

Photo courtesy of Seegrid

Seegrid joins Open Source Robotics Alliance

November 19, 2024 - Seegrid Corporation, a leading manufacturer of autonomous mobile robot (AMR) solutions for palletized material handling in the US, today announced its membership in the Open Source Robotics Alliance (OSRA), an initiative of the Open Source Robotics Foundation (OSRF). Through this partnership, Seegrid will contribute its industry-leading expertise through its active involvement in the open-source robotics community. The company joins a vibrant network of innovators, collectively driving open-source development for the betterment of the global robotics landscape.

As part of the OSRA, Seegrid will actively support initiatives that foster collaboration and shared knowledge across the robotics field. The company aims to participate in key OSRF activities, including the renowned ROSCon event, as well as on-line communities such as GitHub and ROS Discourse.

Keep ReadingShow less
Rich Egan headshot

Rich Egan, Averitt's vice president of international solutions

Averitt

Averitt names Rich Egan vice president of international solutions

COOKEVILLE, Tenn. – Averitt has appointed Rich Egan as the company’s new vice president of international solutions. Egan, who brings over 40 years of experience in the transportation industry and has specialized in international logistics since 1990, will assume the position held by the retiring Charlie McGee.

Since joining Averitt in 2019 as director of international solutions, Egan has played a pivotal role in shaping the company’s global logistics strategy. His expertise and commitment to service excellence have contributed significantly to Averitt’s growth in this sector. In his new role, Egan will lead the international solutions team and drive strategic initiatives to enhance Averitt's global logistics offerings.

Keep ReadingShow less

Conveyor Solutions, KVK, Electrical Services Group, SIM Aftermarket Services, and SIM Software, combine

Elgin, Il. - October 21, 2024 – Systems in Motion today announced that its new name and brand will be effective immediately. This name change is part of a rebranding initiative, but is also the culmination of the companies’ close working relationship for the past five years and represents their unified strength. Systems in Motion will continue to provide material handling services as a tier-one, turnkey material handling integrator.

The Systems in Motion name creates a single and powerful platform – one that embodies client and industry goals of moving forward – while understanding the complexities and unique objectives of every system. The new brand also signifies the culmination of investment in internal processes that streamline procedures, and deliver a seamless customer experience.

Keep ReadingShow less
HTL Freight Acquires CTS Logistics, Expanding into Managed Transportation

HTL Freight Acquires CTS Logistics, Expanding into Managed Transportation


September 24th, Charlotte, NC - HTL Freight, a rising leader in the third-party logistics (3PL), is pleased to announce the acquisition of CTS Logistics, a full-service managed transportation company (4PL) headquartered in Windham, NH. This acquisition, HTL Freight’s fourth major transaction since 2021, reinforces its commitment to delivering exceptional freight solutions across North America.

Keep ReadingShow less