Roadrunner Transportation Systems Inc. has agreed to sell its Unitrans Inc. division to New York-based Quick International Courier Inc. for $95 million in cash.
The logistics and shipping company, which has a significant portion of its operations in Cudahy and was headquartered there until May, plans to use the proceeds of the sale to pay down debt and improve its balance sheet. Roadrunner has revamped its management team this year following the discovery of accounting errors that could result in $20 million to $25 million in adjustments and more than $200 million in goodwill impairment charges.
The sale of Los Angeles-based Unitrans, an international cold chain logistics provider for the life sciences end markets, is expected to close by the end of the quarter. Roadrunner acquired the business in 2014 for $55.5 million.
“We have agreed to divest Unitrans Inc., which is an excellent business but did not integrate within our portfolio,” said Curt Stoelting, chief executive officer of Roadrunner. “We expect to use the proceeds from this transaction to reduce outstanding debt, redeem certain of our outstanding preferred stock, lower our leverage and reduce interest expense. We wish the Unitrans management team and team members well and know that they will have exciting new opportunities as they become part of Quick International Courier.”
