Roadrunner Transportation Services acquires Morgan Southern, Inc.
Washington, D.C., February 2011 — Thayer | Hidden Creek announces that Roadrunner Transportation Systems, Inc. (“RRTS” or the “Company”), one of its portfolio companies, has acquired all of the outstanding stock of Morgan Southern, Inc. for approximately $20 million in cash. Morgan Southern is a privately-held provider of intermodal transportation and related services. With 19 terminals located throughout the United States, Morgan Southern serves the majority of the country’s key intermodal markets. Its customer base consists primarily of direct shippers, intermodal marketing companies, steamship lines and other port and rail related transportation industries. The acquisition was financed with borrowings under RRTS’ existing credit facility.
The Morgan Southern transaction is a solid fit with RRTS’ growth strategy – it provides the Company with a new service offering within its truckload segment and further expands its geographic profile. RRTS’ sales force will serve as an extension of Morgan Southern’s sales efforts to market its intermodal services to new and existing RRTS customers. With growth in international trade and continued improvements in rail efficiency, favorable trends are expected to continue in the intermodal sector for the foreseeable future.
Morgan Southern will continue to operate in its current capacity under the leadership of Ben Kirkland, its head of operations since 1996. RRTS is committed to ensuring maximum customer satisfaction through continuity of Morgan Southern’s personnel and expansion of its service capabilities.