Fresh on the heels of its acquisition of G.W. Palmer, Roadrunner Transportation Systems has purchased the assets of refrigerated truckload provider YES Trans for $1.2 million in cash and an earn-out capped at just more than $1 million.
YES, which generated $5 million in revenues last year, transports meat and produce among the Southeast, Midwest and Northeast.
“The YES acquisition enhances our refrigerated truckload service offering in the Northeast due to its concentration in temperature-controlled products,” Roadrunner’s Brian Van Helden said in a statement. “We will incorporate the YES operations into our existing Massachusetts refrigerated location and are excited about the growth opportunities we collectively envision.”
The company purchased Arkansas-based G.W. Palmer, which has a temperature-controlled focus in the South, on Sept. 11 for $2.5 million and a $2.8 million earn-out. G.W. earned $20 million in revenues in 2012.
In an investor update, BB&T analyst Thom Albrecht wrote Roadrunner consistently shows growth of 20 percent or more and is doing well in this challenging industry. Recent acquisitions will only fuel that growth, he wrote, adding that the company is not acting irresponsibly.
“Contrary to the view of some, RRTS is not making acquisitions on a helter-skelter basis,” he said. “During the past couple of years, nearly all deals have been done to fortify existing niches. While the recent Marisol deal expanded RRTS into global freight forwarding, other deals strengthen core competencies."
Roadrunner acquired Marisol for $66 million in July.