Roadrunner to acquire
Prime Logistics Corp
Aug 25, 2011 10:04 AM
Roadrunner Transportation Systems Inc has entered into a definitive merger agreement to acquire all the outstanding stock of Prime Logistics Corporation for about $97.5 million, consisting of $94.5 million in cash and $3.0 million in stock.
To finance the transaction, Roadrunner will expand its credit facility to $240 million. The parties have received regulatory approval for the transaction and expect to close on or before September 15, 2011, subject to customary closing conditions.
Prime is a non-asset based provider of logistics and freight consolidation services with 2010 revenues of approximately $67.5 million. Its customers mostly consist of food producers that ship more than 1.0 billion pounds of product to retailers, distributors, and warehouses annually. Primeís services are provided from facilities comprising more than 2.0 million square feet and include freight consolidation, inventory management, warehousing, order fulfillment, and related LTL (less-than-truckload) and truckload services.
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