Just days after the publication of Ti brief, North America logistics and transportation mergers & acquisitions heats up, yet another acquisition has been made. The latest acquirer, Roadrunner Transportation Systems, is not shy when it comes to acquisitions. In fact, it has made quite a few and as recent as just July when it acquired Integrated Services Inc. for $13 million.
Integrated Services provides regional logistics for its customers’ warehousing and transportation needs, and has revenue of about $21 million.
But perhaps the bigger news is Roadrunner’s latest acquisition, Active Aero Group, a ground and air expedited service company, which it acquired for $115 million, its largest acquisition this year.
According to the press release, Roadrunner Transportation is purchasing Active Aero because of its spot bid technology, controlled capacity, procurement system and multimodal offering.
“As we have indicated, the ability to provide air and ground expedited services to meet customers’ total transportation needs has been a key strategic objective for Roadrunner,” said Mark DiBlasi, president and chief executive officer of Roadrunner. “Active Aero’s strong position in the marketplace is based upon the high quality of its service offering and personnel and its unique blend of expedited services. As a result, we believe Active Aero represents an ideal match with our strategy and an excellent platform for growth in expedited services globally.”
Indeed, a Stifel note regarding this acquisition suggests the expedited transportation management segment may be important for growing a full-service logistics platform. Stifel cites the late 2013 acquisition of NLM, a competitor of Active Aero, as an example of this trend.
Financially, Roadrunner’s acquisitions are having a positive impact on the company. For the second quarter, Revenue increased 39% to $460.2 million while net income increased 10.7% to $27 million.
Revenue benefited from a number of recent acquisitions, including Wando Trucking, TA Drayage, G.W. Palmer Logistics, Yes Trans, and Rich Logistics, Adrian Carriers, Marisol International and Unitrans.
With this latest acquisition, Roadrunner Transportation Systems portfolio of services is even more impressive. The link shows how these acquisitions fit into its services:
So, who’s next? It looks like m&a activity in North America is indeed increasing. As noted in the Ti brief, improving economic conditions and fragmented market are among the reasons for this increase in activity.