Roadrunner announces merger agreement with Prime Logistics Corporation

To finance the transaction, Roadrunner will expand its credit facility to $240m. The parties have received regulatory approval for the transaction and expect to close on or before September 15, 2011, subject to customary closing conditions.

Prime is a non-asset based provider of logistics and freight consolidation services with 2010 revenues of approximately $67.5m. Prime’s customer base is predominately comprised of food producers who ship over 1.0bn lbs of product to numerous retailers, distributors, and warehouses on an annual basis. Prime’s services are provided from facilities comprising over 2m sq ft and include freight consolidation, inventory management, warehousing, order fulfilment, and related LTL and truckload services.

Mark DiBlasi, President and CEO of Roadrunner, said: "This transaction is strategically beneficial for both companies. Prime provides Roadrunner with enhanced logistics and consolidation capabilities to offer to our combined customer base. Prime’s business model is similar to our LTL model, with the added capability of warehousing and order fulfilment when desired by customers. Prime’s primary value proposition is providing freight consolidation and inventory management services for its customers on a more cost-efficient basis, while meeting the stringent service requirements of larger retailers. This differentiated offering will enhance Roadrunner’s service capabilities with current customers. Furthermore, Roadrunner will be able to add significant value to Prime through the extension of our service capabilities and offerings. Roadrunner can provide Prime access to Transportation Management Solutions (TMS), more cost efficient LTL services and expanded TL capabilities, extending Prime’s value proposition to new and existing customers and enabling Prime to penetrate a larger market."

Quelle: eyefortransport
Portal: www.logistik-express.com