Roadrunner Transportation Systems closed three transactions to complete its divestiture of all truckload segment businesses. This includes the sale of Rich Logistics and Integrated Services to an undisclosed strategic buyer, as well as the sale of Roadrunner Temperature Controlled to Laurel Oak Capital Partners.
“With the actions announced today, we have completed our evolution from a troubled roll-up to a focused, national LTL carrier. We are eternally grateful to our team for the long hours and hard work through the prolonged period of transition,” Chris Jamroz, executive chairman of Roadrunner, said.
These divestitures complete a reorganization that involved the sale of Roadrunner Intermodal Services (November 2019), Flatbed (December 2019), Prime Distribution (March 2020) and Stagecoach (April 2020). With the previously announced completion of the spin-off of Ascent Global Logistics, Roadrunner now consists solely of its less-than-truckload operations.
Contemporaneous with the Ascent spin-off, Paul Svindland, CEO of STG Logistics, joined Roadrunner’s board of directors. Svindland most recently served as CEO of Celadon Group, an asset-based truckload carrier. Prior to Celadon, Svindland was chairman and CEO of Farren International, a ﬂatbed trucking company.
Donald C. Brown and Scott L. Dobak remain independent directors on Roadrunner’s board and Christopher L. Doerr moved over to the Ascent Global Logistics’ board.
“With deep experience in the logistics and transportation sector, Paul will no doubt lend invaluable advice and perspective to our board and executive leadership team as we enter Roadrunner’s next chapter,” Jamroz said.
Simultaneously with the completion of the Ascent spin-off, Roadrunner terminated its existing senior secured credit facility with BMO Harris and entered into a new $45 million senior secured asset-based credit facility with Crystal Financial. Roadrunner’s divestitures and the spin-off of Ascent reduced the company’s balance sheet liabilities by approximately $400 million, leaving the company with a net cash position.
“We enter this new stage of Roadrunner with the healthiest balance sheet in the company’s history,” Frank Hurst, president of Roadrunner Transportation Systems, said.
Roadrunner Transportation Systems is a less-than-truckload provider