Roadrunner Acquires Stagecoach For Cross-Border Services
Roadrunner Transportation Systems has acquired Stagecoach Cartage and Distribution for $35 million plus an earn-out capped at $5 million, the company announced.
Stagecoach is a provider of truckload and logistics services based in El Paso, Texas, with regional, intermodal and over-the-road truckload services throughout the southwestern U.S. and Mexico. It has around 145 power units and nearly 300 trailers. The company also provides warehousing and transloading solutions through a network of facilities in Texas.
This is a departure from Roadrunner’s historically asset-light focus, points out David Ross at Stifel in a note to investors, as was the acquisition of Active Aero last fall.
Roadrunner says it purchased Stagecoach to provide a platform for expanding its cross-border services.
“Stagecoach’s strong presence within the El Paso and Laredo markets, coupled with the company’s Mexican Operating Authority, provides us with immediately realizable growth opportunities created by the accelerating demand within the region,” said Mark DiBlasi, president and CEO of Roadrunner.
The acquisition was financed with borrowings under Roadrunner’s credit facility.