Today it was announced that Roadrunner Transportation Systems Inc. will sell subsidiary company Unitrans Inc. to Quick International Courier Inc. for $95 million.
Money From Sale Of Subsidiary To Go Toward Paying Debt
The divestiture of Unitrans is a cash sale and is expected to be completed by the end of this quarter. Proceeds from the sale will be used to pay down the company’s debt.
According to Roadrunner CEO Curt Stoelting, “we have agreed to divest Unitrans, Inc., which is an excellent business but did not integrate within our portfolio. We expect to use the proceeds from this transaction to reduce outstanding debt, redeem certain of our outstanding preferred stock, lower our leverage, and reduce interest expense. We wish the Unitrans management team and team members well and know that they will have exciting new opportunities as they become part of Quick International Courier.”
According to Milwaukee Business News, “Roadrunner has revamped its management team this year following the discovery of accounting errors that could result in $20 million to $25 million in adjustments and more than $200 million in goodwill impairment charges.”
Roadrunner acquired Unitrans in March of 2014 for $55.5 million.
According to their website, Quick International Courier provides “door-to-door service for shipping blood and organs for transplant, to critical high-tech parts and medical devices, to crucial time-sensitive and highly confidential documents.”
Unitrans specializes in “international ocean and air transportation management, customs house brokerage, and domestic logistics solutions, with a focus on complex, cold chain, and high value shipments,” according to a news release.