Rich Logistics, a trucking and transportation company based in Little Rock, was purchased by Roadrunner Transportation Systems Inc. in a deal valued around $48 million.
As part of the deal, Roadrunner also purchased Everett Transportation, a contractor operating exclusively for Rich Logistics.
Shannon Everett, Rich’s chief financial officer, said the company will continue to operate under the Rich Logistics name. Everett said little is expected to change for management and employees as a result of the purchase by Roadrunner, a Wisconsin-based transportation company that is publicly traded on the New York Stock Exchange.
“We’re excited about the new partnership with Roadrunner,” Everett said. “The important thing is this allows us some longevity and being part of a larger organization allows us to be more competitive. It’s good news for our employees.”
Everett declined to give a number of employees. According to the Arkansas Trucking Association membership directory, Rich operates 250 trucks and owns 1,050 trailers as part of its operations.
Rich hauls freight in the United States and Mexico and uses both employee drivers and independent contractors. Roadrunner, which reported $1.3 billion in revenue for 2013, expressed interest in Rich because of its operating network and service standards.
“The acquisition of Rich Logistics provides an excellent opportunity to expand our truckload offering and broadens our access to freight going into and coming out of Mexico,” Roadrunner President and Chief Executive Officer Mark DiBlasi said in a release. “Rich Logistics’ superior service standards and strong reputation will allow us to strengthen its existing customer relationships as well as cultivate new relationships. Both Rich Logistics’ and Everett’s management teams will stay in place to help achieve the growth opportunities that we collectively envision.”
Rich is the second Arkansas-based company purchased by Roadrunner in the past five months. Roadrunner announced in September that it had acquired G.W. Palmer Logistics in Batesville as part of a deal valued at $2.5 million with up to an additional $2.8 million based on performance.
Roadrunner stock ended the day up $0.37 at $22.63 per share.
Business, Pages 21 on 02/25/2014