Roadrunner Sells Off Flatbed Division for “$30 Million in Cash”
Downers Grove, IL – On the same day mega carrier Celadon Group officially announced its filing of Chapter 11 bankruptcy and plan to cease operations, Illinois-based Roadrunner Transportation System, Inc. disclosed the sell-off of its flatbed business unit in a statement to Transportation Nation Network (TNN).
Roadrunner said the unit will sell for $30 million in cash, “subject to customary purchase price and working capital adjustments.”
The company has yet to disclose further details of the transaction.
Roadrunner’s flatbed division operates as Clearwater, MN-based D&E Transport and serves customers in the industrial, agriculture and general freight markets.
Proceeds from the sale of D&E are being used to “repay finance leases and debt and pay transaction costs, with the remaining amount available for general corporate purposes,” according to the company.
Roadrunner’s Chief Executive Officer (CEO), Curt Stoelting, said in a statement, “The divestiture of the flatbed business unit is another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light LTL segments.”
According to data from the Federal Motor Carrier’s Safety Administration, D&E has 205 power units and employs 210 drivers.
D&E’s revenue between September 2018 and September 2019 was over $50 million, according to Roadrunner.
In September, TNN reported 450 Roadrunner jobs were lost after the company downsized its “unprofitable” dry van business.
Then, in November, Roadrunner announced the sale of its intermodal division — Roadrunner Intermodal Services (RIS) — to Michigan-based Universal Logistics Holdings for a reported $51.25 million cash.
In a situation eerily similar to Celadon’s demise, three former Roadrunner executives were indicted in April on 19 counts of conspiracy, securities fraud, wire fraud, bank fraud and attempting to influence auditors to falsify the company’s books in order to artificially inflate the firm’s earnings between 2013 and 2017.
The scam drove Roadrunner’s stock price down significantly, costing shareholders approximately $245 million.
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Photo courtesy of D&E Transport