Roadrunner Transportation Systems Inc. on Tuesday, May 31, announced that it has acquired all of the outstanding stock of Bruenger Trucking Co., a provider of truckload services based in Wichita, Kan., for about $10.6 million, plus an earnout capped at $3 million. Bruenger transports primarily refrigerated product throughout the United States using a combination of owner-operators and a modern fleet of company-owned equipment. Roadrunner says the acquisition was financed with borrowings under its amended and expanded credit facility.
“The acquisition of Bruenger broadens our geographic coverage and expands our capacity network,” says Mark DiBlasi, president and chief executive officer of Roadrunner, based in Cudahy, Wis. “Bruenger’s Midwest presence and east-west traffic will also enable us to more effectively cross-sell our truckload services. In addition, Bruenger brings superior service and safety records to Roadrunner, together with solid long-term customer relationships. Bruenger’s principal former owner and experienced management team will remain in place and are excited about the growth opportunities we collectively envision.”
During calendar year 2010, Bruenger generated about $23 million in revenues and about $3.5 million of earnings before interest, taxes, depreciation and amortization. The earn-out portion of the purchase price is fully accrued and is based upon Bruenger’s operations attaining certain growth and performance objectives over the next 3½ years. The base threshold for any earnout amount to be paid is $2.1 million of annual operating income. “We expect the Bruenger acquisition to be accretive to our net earnings for the balance of 2011 and beyond,” says Peter Armbruster, chief financial officer of Roadrunner.
The Roadrunner announcement apparently means that Integrated Freight Corp.’s planned acquisition of Bruenger, announced Oct. 12, 2010, didn’t go through as intended. Integrated Freight said it has signed a definitive agreement to purchase Bruenger Trucking Co. and its subsidiary, M. Bruenger & Co. Inc., for about $11 million. Integrated Freight, based in Sarasota, Fla., said at the time that closing of the transaction was anticipated within 45 days.
Paul Henley, CEO of Integrated Freight, made no mention of Bruenger in a May 17 update to his company’s stockholders.