Cudahy-based Roadrunner Transportation Systems Inc. today announced it has acquired El Paso, Texas-based Stagecoach Cartage and Distribution for about $35 million.
Roadrunner, an asset-light transportation and logistics service provider, will also cover an earnout of up to $5 million. The company used funds borrowed from its credit facility to complete the transaction.
Stagecoach offers truckload and logistics services throughout the southwest and in Mexico. It also provides warehousing and transloading options at its facilities in south-central and western Texas. Its 12-month trailing revenue was about $34 million as of June 30, with EBITDA of more than $7 million. The acquisition is expected to be accretive to Roadrunner’s 2015 earnings.
Roadrunner plans to retain Stagecoach’s 250 employees, and add more as the company grows.
“Stagecoach is an extremely high-quality company with a broad service portfolio and an experienced and motivated management team that represents an excellent platform to expand our cross-border services,” said Mark DiBlasi, president and chief executive officer of Roadrunner. “Stagecoach’s strong presence within the El Paso and Laredo markets, coupled with the company’s Mexican Operating Authority, provides us with immediately realizable growth opportunities created by the accelerating demand within the region.”
“We’re very excited to join Roadrunner,” said Scott McLaughlin, president of Stagecoach. “In order to achieve our growth potential, we sought to partner with a larger organization that had the resources and personnel that could assist us in accomplishing our goals. After meeting with several members of the Roadrunner team, it was clear that we shared a very similar cultural and strategic vision. Our organization is confident that as a part of Roadrunner, we can meet and exceed our collective goals.”
Since 2005, Roadrunner has made 34 acquisitions. During that time, DiBlasi has grown its revenue from about $150 million to almost $1.9 billion, both through acquisitions and through organic growth. Through June, the company had 4,171 employees.
