Roadrunner Transportation Systems said Monday that it has acquired A&A Express, a provider primarily of refrigerated truckload services based in Brandon, S.D.
Cudahy, Wis.-based Roadrunner is paying about $24 million, plus an earn-out capped at $2.5 million. A&A uses both independent contractors and employee drivers. The acquisition was financed with borrowings under Roadrunner's credit facility.
Mark DiBlasi, president and chief executive officer of Roadrunner, said the purchase of A&A "expands our refrigerated capacity in key lanes and broadens our customer base. In addition, A&A's Midwest presence enables us to more effectively cross-sell our truckload services because of their superior service and solid, long-term customer relationships. A&A's principal former owners will remain in place and are excited about the growth opportunities we collectively envision.”
In 2011, A&A generated revenues of about $39.3 million. A&A is expected to be accretive to Roadrunner's earnings in 2013. Roadrunner had revenue of $778 million in the first nine months of this year. - Chris Dupin