[Stay on top of transportation news: Get TTNews in your inbox.]
Roadrunner Transportation Systems has sold its intermodal business to Universal Logistics Holdings for $51.25 million in cash, the transportation and asset-light logistics company announced Nov. 5.
Roadrunner officials said Roadrunner Intermodal Services provides drayage and chassis management services to transport freight among ocean ports, rail ramps and shipping docks through 23 U.S. terminals. The intermodal business had revenue of approximately $125 million for the 12 months ended Sept. 30 and was part of the company’s truckload segment, according to Roadrunner officials.
“The divestiture of Roadrunner Intermodal Services is another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light less-than-truckload segments to improve our operating performance and returns on invested capital,” CEO Curt Stoelting said in a written statement. “Universal Logistics is an established transportation and logistics company that shares our dedication to customer service and is a good fit for the intermodal services business.”
Roadrunner, based in Downers Grove, Ill., said it used the proceeds from the sale to repay finance leases and debt associated with Roadrunner Intermodal Services, and to pay transaction costs, with the remaining cash available for general corporate purposes.
Roadrunner has been attempting to adjust its business model after a 2017 accounting scandal. In April, the Securities and Exchange Commission formally charged former Chief Financial Officer Peter Armbruster and two of his associates with accounting fraud and misleading investors about the company’s financial results. Armbruster was accused of hiding expenses by improperly deferring and spreading them across multiple quarters to minimize the impact on net earnings.
On Sept. 30, Roadrunner announced that it would lay off 450 employees and downsize its dry van business, a truckload segment the company said had become unprofitable.
The company said at the time it would reduce dry van tractor-and-trailer fleets by more than 50% by closing five terminal locations.
Roadrunner ranks No. 17 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
Universal Logistics Holdings, based in Warren, Mich., provides transportation and logistics services, including dry van and flatbed truckload, intermodal and freight brokerage, dedicated contract carriage, and warehousing and distribution.
Universal ranks No. 28 on the for-hire TT100 and No. 27 on the Transport Topics Top 50 list of the largest logistics companies in North America.
Want more news? Listen to today’s daily briefing: