Roadrunner To Buy Prime Logistics For $97.5 Million

Roadrunner Transportation Systems Inc. has agreed to buy a warehousing and distribution company for $97.5 million.

The acquisition of Prime Logistics Corp., Plainfield, IN, would be the fourth this year for Cudahy-based Roadrunner, and the largest yet. Prime, which does business as Prime Distribution Services, posted revenue of $67.5 million last year.

Roadrunner expects the acquisition to bolster earnings immediately, and by 16 cents to 18 cents a share in 2012.

Prime handles more than a billion pounds of food a year in four warehouses totaling about 2 million square feet. The company receives and stores the products of many food companies, then combines them into single-truck shipments bound for retailers.

Prime's largest warehouse, at 1.2 million square feet, is at its headquarters just outside Indianapolis. The firm also operates warehouses in suburban Dallas, near Atlanta and in Stockton, CA.

Just three weeks ago Roadrunner announced its purchase of The James Brooks Co., which transports fresh produce at the ports of Los Angeles/Long Beach and Oakland, for $7.5 million. Earlier this year Roadrunner bought Bruenger Trucking Co., a refrigerated hauler out of Wichita, Kan., for $10.6 million plus up to $3 million more depending on the business' future performance. In February, Roadrunner paid $20 million for short-haul trucker Morgan Southern Inc. of Atlanta.

Roadrunner is a trucking and logistics operation that uses about 1,200 independent contractors -- and their trucks -- to haul freight.