RRTS acquires Capital Transportation Logistics

Non asset-based third-party logistics services provider Roadrunner Transportation Services (RRTS) continues to remain active on the acquisition front, announcing last week it has acquired all of the outstanding stock of Nashua, New Hampshire-based Capital Transportation Logistics (CTL), a transportation services management (TMS) services provider.

By ·

Non asset-based third-party logistics services provider Roadrunner Transportation Services (RRTS) continues to remain active on the acquisition front, announcing last week it has acquired all of the outstanding stock of Nashua, New Hampshire-based Capital Transportation Logistics (CTL), a transportation services management (TMS) services provider.

The sale price, according to RRTS officials, was $6.25 million and was financed with borrowings under RRTS’ credit facility. RRTS officials were not available at press time for additional comment.

CTL, which had roughly $6 million in 2011 net revenues, mainly focuses on TMS services in the less-than-truckload (LTL) market, as well as truckload brokerage, freight bill, and audit payment services. RRTS said that CTL customers use a Web-based system that allows clients to optimize carrier selection, dispatch and track shipments, generate invoices, create custom reports, and perform improvement analysis.

“The acquisition of CTL broadens the service offerings within our TMS business segment and expands our critical mass, freight density, and customer base in the Northeast,” said Mark DiBlasi, CEO of Roadrunner, in a statement. “CTL has built solid customer relationships with mid-sized and large shippers by providing robust, user-friendly technology solutions, access to consistently competitive rates, and an ability to drive continuous operating improvements.”

This transaction marks the fifth acquisition has made. In September, it acquired Prime Logistics Corporation, a non-asset based provider of logistics and freight consolidation. In February 2011 it acquired Morgan Southern, a privately-held provider of intermodal transportation and related services for roughly $20 million, and in May 2011 it acquired Wichita, Kansas-based truckload services provider Bruenger Trucking Company; and in July 2011 it acquired The James Brooks Company, a provider of intermodal transportation and related services for the ports of Los Angeles/Long Beach and Oakland.

“This deal is the kind of deal we like to see management making, as it fits within the company’s strategy of targeting smaller, asset-light/non-asset-based tuck-in acquisitions that complement the company’s existing service offerings,” wrote Stifel Nicolaus analyst David Ross in a research note. “TMS is a good business, and we believe the acquisition to be a net positive for Roadrunner. While small, we believe the CTL deal is a net positive for Roadrunner, as it helps build-out the company’s footprint in the Northeast, and as TMS tends to be quite ‘sticky’ with customers, especially as those customers integrate their operations deeper within the systems and service.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

· All Topics
Latest Whitepaper
Your Guide to Voice for the Warehouse
Is voice a good fit for my operation? How would voice work in my warehouse? With the help of the Vitech Guide to Voice, you can find all the answers to your voice questions in one place.
Download Today!
From the October 2017 Modern Materials Handling Issue
An early adopter, Rochester Drug Cooperative is using robotic piece-picking technology to complement picking of slow-moving items. System report for Rochester Drug Cooperative, Robotic picking and inventory management, Innovative distribution center robotics solutions , IAM Robotics case study
Injecting agility into WMS implementation
The Big Picture: Business as Unusual
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
The State of the DC Voice Market
A lot has changed in the last 10 years, especially in voice technology. This webinar will cover the state of the voice market, review two leading voice solutions and help you gain a better understanding of the options and capabilities available today.
Register Today!
EDITORS' PICKS
Rochester Drug Cooperative: Robots ready for work
It’s still early stages, but Rochester Drug Cooperative is proving that mobile robotic piece...
Manufacturing Day: 2,716 events from Hawaii to Alaska to Puerto Rico
Events to be scheduled throughout the month, so the remaining 249,185 manufacturing firms in the...

System Report: Pouch sorter powers Stage’s fulfillment needs
How a hometown department store chain transformed its e-fulfillment processes with pouch sortation...
Cubing and Weighing Equipment: Measure Up
The use of cubing and weighing equipment is growing beyond dimensional weight applications.