Universal Logistics Holdings Inc., the Moroun family trucking giant, has acquired a transportation and chassis management services business for approximately $51.25 million.
Downers Grove, Ill.-based Freight transportation company Roadrunner Transportation Systems Inc. offloaded its Roadrunner Intermodal unit, the companies announced in Tuesday news releases. The price is subject to capital adjustments.
Warren-based Universal Logistics (NASDAQ: ULH) CEO Jeff Rogers said in a release that Roadrunner Intermodal was a “strong competitor” and he sees opportunity in combining to add capacity. The addition increases Universal’s intermodal drayage fleet to more than 2,500 tractors and estimated annual revenue of more than $500 million, the release said.
Roadrunner used some proceeds from the deal to repay debt tied to Roadrunner Intermodal and for transaction costs. The rest is open for “general corporate” uses, Roadrunner said.
The intermodal unit recorded $125 million in revenue for the year ending Sept. 30. Its sale is “another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light LTL segments to improve our operating performance and returns on invested capital,” Roadrunner CEO Curt Stoelting said in the company’s release.
The sale comes after third-quarter losses for Roadrunner due to the UAW’s 40-day strike against General Motors Co. and a malware attack, according to trade publication Transport Topics.
Universal Logistics — ranked by Crain’s as the 20th largest publicly held company in Southeast Michigan by revenue — reported net income of $52.2 million on revenue of $1.46 billion in 2018, compared with $1.2 billion the previous year.
ULH was recently ordered to pay a $36 million legal settlement after losing an appeal of a case involving a serious truck crash.
Recent Comments