Roadrunner Transportation Systems announced the acquisition of The James Brooks Company, a provider of intermodal transportation and related services to the ports of Los Angeles/Long Beach and Oakland. James Brooks transports primarily fresh produce including citrus, vegetables, fruit, and nuts. The purchase price was approximately $7.5 million and was financed with borrowings under RRTS’ credit facility.
The acquisition is the fourth in recent months for Roadrunner. In 2009, the company acquired multimodal transportation provider Bullet Freight Systems. Earlier this year, Roadrunner acquired Conley, Ga.-based drayage company Morgan Southern and Wichita, Kan.-based M. Bruenger Trucking.
“The James Brooks acquisition substantially enhances the scale and critical mass of our drayage operations in key ports on the West Coast,” says Mark DiBlasi, president and CEO of Roadrunner. “In addition, the company’s seasonality matches up well with our existing intermodal drayage business, which we believe will enhance our driver utilization and retention. We look forward to supporting and expanding James Brooks’ solid customer relationships and strong service record as we pursue continued growth in the business.”
Peter Armbruster, CFO of RRTS, said, “During calendar year 2010, James Brooks generated approximately $12 million in revenues with operating margins in excess of 10%. We expect the James Brooks acquisition to be accretive to our net earnings for the balance of 2011 and beyond.”