Roadrunner Transportation Systems on Monday, Aug. 13, announced that it has acquired all of the outstanding stock of Expedited Freight Systems Inc., a Midwest regional overnight less-than-truckload provider based in Kenosha, Wis., for about $10 million, plus an earnout over four years. EFS has 12 terminal locations throughout the upper Midwest, which enables it to provide customized overnight service to its customers.
“The acquisition of EFS complements and expands our Midwest regional overnight service offering,” said Mark DiBlasi, president and chief executive officer of Cudahy, Wis.-based Roadrunner. “EFS has an outstanding reputation for quality and service, which are paramount in the regional overnight business and have resulted in excellent customer relationships.” DiBlasi said the EFS management team led by Tom Kurgan will remain in place and will continue to run the day-to-day operations of EFS.
Scott Dobak, president of Roadrunner’s LTL group, said EFS’ terminal footprint and service offering align perfectly with its Midwest terminal network with limited overlap. “Historically, Roadrunner’s Midwest regional service was principally outbound from Chicago to our existing Midwest terminal regions,” Dobak said. “Collectively, we will be able to offer our customers enhanced overnight services throughout the Midwest.”
In 2011, EFS generated revenues of about $19 million. “The EFS team is very excited to become an integral part of Roadrunner,” Kurgan said. “We were looking for a partner that could accelerate our ability to attain our growth objectives while maintaining our focus on customer service,” he said. “We found Roadrunner to be a superior fit for EFS, both strategically and culturally.”