Tuesday, December 15, 2009

LTL Consolidation As Roadrunner Acquires Truck And Logistics Assets

US Transport Groups Combine
Shipping News Feature

US – Wisconsin based Roadrunner Transportation Services, 40th largest trucking company in the country last year, has acquired virtually all the assets of Bullet Freight Systems Inc. and that company’s logistics offshoot Caliber Logistics, adding a formidable presence to their less than truckload (LTL) services in the California and Pacific Northwest area.

In a principally equity linked deal LTL services will be carried out under the new subsidiary, Bullet Transportation Services Inc. and Caliber Logistics will handle full truck loads, air freight forwarding and any intermodal contracts. Bullet have a supply chain network which spans the country and the acquisition means that Roadrunner have effectively doubled in size in the past four years since combining with Dawes Transport when they passed into the hands of current holding company Thayer/Hidden Creek Investments.

Up to the merger, Roadrunner, whose revenue exceeded half a billion dollars last year, employed around 900 drivers to chauffeur their 800 or so trucks, now add an $80 million company to their portfolio and pick up freight terminals and equipment in Los Angeles, Seattle, Portland and Chicago. Roadrunner stock was to become public eighteen months ago but the recession caused the cancellation of the scheme.

Consolidation of the truck market looks to be, as predicted, likely to become the norm as economy of scale is seen as the route to greater efficiency by the major transport groups.