Roadrunner Transportation Systems Inc. announced that it has acquired all of the outstanding stock of Central Cal Transportation
, a provider of intermodal transportation and related services from the Northern California region.
Central Cal transports primarily nuts, wine and retail import products. The purchase price was approximately $4 million plus an earnout. The acquisition was financed with borrowings under Roadrunner's credit facility.
"Central Cal's customer focus around nuts, wine, and retail imports diversifies Roadrunner's West Coast intermodal business to make volumes less seasonal," notes David Ross, transportation analyst with Stifel Nicolaus, in an email to investors.
During calendar year 2011, Central Cal generated approximately $19 million in revenues. Central Cal is expected to be accretive to Roadrunner's earnings in 2013.