Roadrunner Transportation Services Inc. announced Monday, Dec. 14, that it has acquired substantially all of the operating assets and business of Bullet Freight Systems Inc., a transportation and logistics company headquartered in Anaheim, Calif. Bullet offers a full range of services, including less-than-truckload services through Bullet as well as truckload, intermodal and air freight services through its Caliber Logistics division.
Bullet’s LTL services will continue to be provided through a newly formed subsidiary, Bullet Transportation Services Inc., and Caliber Logistics will continue to operate as a separate division supported by a substantially greater collective sales network. All Bullet services will be maintained and enhanced under Roadrunner. Terms of the acquisition were not released.
“We have successfully doubled our company’s size in the past four years despite the economic downturn,” says Mark DiBlasi, president and chief executive officer of Roadrunner, based in Cudahy, Wis. “Acquiring Bullet enhances our ability to serve customers and expands our core competencies. This is a critical step in our vision to provide our customers with a comprehensive suite of value-added services while consistently attaining long-term profitable growth.”
Roadrunner says the acquisition is indicative of its continued focus to expand service options to better meet customers’ supply-chain needs. Bullet customers now have access to Roadrunner’s nationwide terminal and delivery network, and conversely, Roadrunner is able to offer LTL service. With the addition of Caliber Logistics’ operations, RRTS also now has the ability to offer partial truckload, intermodal, air and air solutions throughout the Roadrunner expanded sales network. The Roadrunner and Bullet sales staffs will be aligned strategically to compete for the betterment of the whole organization.
Roadrunner’s strategic plan is further advanced by offering nonasset-based solutions to a larger base of customers and by providing comprehensive transportation and logistics services over a broader geographic coverage. Roadrunner says the addition of Bullet’s premium service offering and customer base catapults it into a major transportation provider in the Los Angeles and Pacific Northwest markets while enhancing its market position in the Chicago area.
Because the transaction was financed predominately with an equity-linked security rather than debt, the increased revenues and profitability from Bullet will enhance Roadrunner’s financial position and provide greater financial flexibility, DiBlasi says.