Roadrunner Continues Sell-Off With Sale of 150-Truck Dry Van Carrier
Downers Grove, IL – Roadrunner Transportation Systems has continued its “strategy to simplify” with the sell-off of Stagecoach Cartage and Distribution, LLC., the company announced on Wednesday.
In a release sent to Transportation Nation Network (TNN), Roadrunner said the division had been sold to Santa Teresa, NM-based carrier J.H. Rose Logistics.
Stagecoach, located in El Paso, TX, was a part of Roadrunner’s dry van business unit.
In addition to its dry van services, Stagecoach offers warehousing services in the bulk resin and general freight markets.
“The divestiture of our Stagecoach business unit is another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light LTL segments,” Roadrunner’s Chief Executive Officer, Curt Stoelting, said.
The terms of the transaction were not disclosed.
Roadrunner acquired Stagecoach in July 2015 for a reported $35 million, plus an earn-out capped at $5 million.
According to data from the Federal Motor Carrier’s Safety Administration, Stagecoach has 191 drivers and operates 149 power units.
The sale of Stagecoach is the latest in a litany of sell-offs by Roadrunner.
In January 2020, TNN reported the sale of Prime Distribution Services to C.H. Robinson for $225 million cash.
The month prior, Roadrunner announced the sale of its flatbed division for $30 million cash.
In November 2019, Roadrunner announced the sale of its intermodal division to Michigan-based Universal Logistics Holdings for $51.25 million cash.
In each instance, Stoelting cited the company’s “simplifying” strategy.
The divestitures generated approximately $300 million of cash proceeds which Roadrunner primarily used to pay down finance leases and debt in order to improve its balance sheet.
Additionally, TNN reported 450 Roadrunner jobs were lost after the company downsized its “unprofitable” dry van business and closed multiple terminals for Little Rock, AR based-Rich Logistics in September 2019.
Problems for Roadrunner seemed to come to a head after three former Roadrunner executives were indicted in April 2019 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 carrier’s earnings between 2013 and 2017.
The scam drove the company’s stock price down significantly, costing shareholders approximately $245 million.
Last week the company announced plans to voluntarily withdraw its common stock from listing on the New York Stock Exchange (NYSE) and to voluntarily deregister from the reporting requirements of the Securities and Exchange Commission (SEC).
Stay logged onto to TransportationNation.com for the latest in this developing story.
Photo courtesy Stagecoach