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updated: 11/6/2019 9:05 AM

Roadrunner sells intermodal business for $51 million

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DOWNERS GROVE -- Roadrunner Transportation Systems said it has sold its Roadrunner Intermodal Services business to Universal Logistics Holding, based in Warren, Michigan, in a cash deal worth $51.25 million

Roadrunner Intermodal Services provides management services to transport freight between ocean ports, rail ramps and shipping docks through 23 terminals nationwide. The business had revenue of approximately $125 million for the last 12 months, ending Sept. 30, and was part of the company's Truckload segment.

"The divestiture of Roadrunner Intermodal Services is another step forward in our strategy to simplify our portfolio by focusing on our value-added logistics and asset-light LTL segments to improve our operating performance and returns on invested capital," said Roadrunner CEO Curt Stoelting. "Universal Logistics is an established transportation and logistics company that shares our dedication to customer service and is a good fit for the intermodal services business,"

The company used the proceeds from the sale to repay finance leases and debt associated with Roadrunner Intermodal Services and pay transaction costs, with the remaining amount available for general corporate purposes.