Less-than-truckload carrier Roadrunner announced Friday that its CEO is part of a private equity group that has taken a controlling interest in the company.
Prospero Staff Capital has acquired a majority stake in the Downers Grove, Illinois-based company. The deal was co-led by Chris Jamroz, Roadrunner executive chairman and CEO, and investor Ted Kellner. The group replaces activist investor Elliott Investment Management as the majority holder. Elliott will retain a minority interest in the company.
Prospero is part of Jamroz’s investment company, LyonIX Holdings, which has holdings in other transportation and logistics companies as well as investments in real estate, infrastructure and cyber security companies.
Kellner runs various investment vehicles, including Fiduciary Management Inc., which has more than $17 billion in assets under management. Kellner is a longtime investor in Roadrunner.
Financial terms of the transaction were not provided, but Roadrunner (OTC: RRTS) said it would use “fresh capital” to fund organic growth and acquisitions.
“After comprehensively unwinding the prior management’s roll-up strategy to get to a pure-play LTL network, Roadrunner now stands as a premium long-haul carrier,” Jamroz stated in a news release.
Jamroz has transformed Roadrunner into a standalone LTL operation specializing in long-haul, metro-to-metro shipments. The company’s national network serves more than 40 major metro markets.
The company spun off Ascent Global Logistics, a freight forwarding and brokerage operation, in 2020. The spin off was part of a broader breakup at Roadrunner after it struggled for years to integrate acquired trucking and logistics assets.
Jamroz is credited with seven business exits, generating nearly $10 billion in value to financial sponsors.
“From its roots in my home state of Wisconsin, Roadrunner has grown into the largest direct metro-to-metro LTL carrier, and I’m looking forward to growing our roster of direct corporate shippers and new investment in the business, as we continue driving Roadrunner’s success,” Kellner said.
Shares of RRTS, which trade on the pink sheets, were up 41.9% to $1.49 at 12:28 p.m. EST on Friday. Shares remain off 6% year-to-date.