Cudahy-based Roadrunner Transportation Systems Inc. has acquired all of the outstanding stock of Bruenger Trucking Company, a provider of truckload services based in Wichita, Kan., for approximately $10.6 million, plus an earn-out capped at $3 million.
Bruenger transports primarily refrigerated product throughout the United States, utilizing a combination of independent contractors and a fleet of company-owned equipment.
The acquisition was financed with borrowings under Roadrunner’s amended and expanded credit facility.
Mark DiBlasi, president and chief executive officer of Roadrunner, said, "The acquisition of Bruenger broadens our geographic coverage and expands our capacity network. 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."
Peter Armbruster, chief financial officer of Roadrunner, said, "During calendar year 2010, Bruenger generated approximately $23 million in revenues and approximately $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 3.5 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."
