Business

Roadrunner sells distribution service for $225M

Posted January 29, 2020 12:00 am

DOWNERS GROVE - Roadrunner Transportation Systems has sold its Prime Distribution Services business to C.H. Robinson Worldwide for $225 million in cash.

Prime Distribution Services, headquartered in Plainfield, Indiana, provides a comprehensive suite of retail consolidation solutions, with five food grade warehouse facilities strategically located across the nation and a team of retail supply chain experts dedicated to helping clients achieve compliance with large U.S. retailer delivery and in-stock requirements. The business had revenue of $108.7 million last year and is part of the company's ascent global logistics segment.

"The divestiture of Prime Distribution Services is a unique opportunity for us to significantly improve our balance sheet by paying off all borrowings," said Roadrunner Chief Executive Officer Curt Stoelting.

The sale is expected to close by the end of the first quarter.

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