Roadrunner Continues Sell-Off With $225 MILLION Sale to C.H. Robinson
Downers Grove, IL – In what Roadrunner Transportation Systems CEO calls a “strategy to simplify” the company’s portfolio, on Tuesday the company announced the sale of one of its subsidiaries to C.H. Robinson.
In a press release, Roadrunner stated it will sell Prime Distribution Services, headquartered in Plainfield, IN, to C.H. Robinson Worldwide, Inc., for $225 million cash.
According to the company, Prime Distribution “provides a comprehensive suite of retail consolidation solutions,” and has five food grade warehouse facilities across the U.S., including two in Plainfield, IN; Dallas, TX; Stockton, CA; and Norcross, GA.
“The divestiture of Prime Distribution Services is a unique opportunity for us to significantly improve our balance sheet by paying off all borrowings under our ABL and Term Loan Credit Facilities,” says Roadrunner’s CEO, Curt Stoelting.
The company reported revenue of $108.7 for the year ended December 31, 2019.
“We have great respect for C.H. Robinson, its management team and employees. We know the C.H. Robinson team shares our commitment to customers and is dedicated to providing quality logistics services that help customers operate and grow their business,” Stoelting says of Prime Distribution’s purchaser.
Based in Eden Prairie, MN, C.H. Robinson was founded in 1905 and claims to have “nearly $20 billion in freight under management and 18 million shipments annually.”
The sale of Prime Distribution is the latest in Roadrunner’s “simplifying” strategy.
In December 2019, Roadrunner announced the sale of its flatbed division for $30 million cash.
The month before, Roadrunner announced the sale of its intermodal division to Michigan-based Universal Logistics Holdings for a reported $51.25 million cash.
In September 2019, TNN reported 450 Roadrunner jobs were lost after the company downsized its “unprofitable” dry van business.
Problems for Roadrunner seemed to come to a head in April 2019 after three former Roadrunner executives were indicted in April on 19 counts of conspiracy, securities fraud, wire fraud, bank fraud and attempting to influence auditors to falsify the company’s books in order to artificially inflate the firm’s earnings between 2013 and 2017.
The scam drove Roadrunner’s stock price down significantly, costing shareholders approximately $245 million.
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