Roadrunner Transportation Systems Inc. announced it has acquired all of the outstanding stock of Expedited Freight Systems Inc., a regional overnight less-than-truckload (LTL) provider based in Kenosha, for approximately $10 million plus an earnout over four years.
EFS has 12 terminal locations throughout the upper Midwest, which enables it to provide customized, overnight service to its customers.
Mark DiBlasi, president and chief executive officer of Cudahy-based Roadrunner, said, “The acquisition of EFS complements and expands our Midwest regional overnight service offering. EFS has an outstanding reputation for quality and service, which are paramount in the regional overnight business and have resulted in excellent customer relationships. The management team led by Tom Kurgan will remain in place and will continue to run the day-to-day operations of EFS.”
Scott Dobak, president of Roadrunner’s LTL group, added, “EFS’ terminal footprint and service offering align perfectly with our Midwest terminal network with limited overlap. Historically, Roadrunner’s Midwest regional service was principally outbound from Chicago to our existing Midwest terminal regions. Collectively, we will be able to offer our customers enhanced overnight services throughout the Midwest.”
Tom Kurgan, EFS president and CEO, said, “The EFS team is very excited to become an integral part of Roadrunner. We were looking for a partner that could accelerate our ability to attain our growth objectives while maintaining our focus on customer service. We found Roadrunner to be a superior fit for EFS both strategically and culturally.”
In 2011, EFS generated revenues of approximately $19 million. The acquisition of EFS is expected to be accretive to Roadrunner’s earnings in the fourth quarter of 2012.