PR: Roadrunner announces planned separation of Ascent Global Logistics

Sourced from Cision PR Newswire:

DOWNERS GROVE, Ill., July 27, 2020 /PRNewswire/ — Roadrunner Transportation Systems, Inc. (“Roadrunner” or the “company”) (Pink: RRTS) today announced that the company intends to effectuate a spin-off of Ascent Global Logistics as a stock dividend to its stockholders. The proposed spin-off remains subject to final approval by Roadrunner’s Board of Directors, and certain tax and legal considerations. The proposed spin-off, which is expected to be completed in August 2020, would create two independent companies: Roadrunner Transportation Systems, Inc. (doing business as Roadrunner Freight and encompassing the less-than-truckload and truckload businesses) and privately-held Ascent Global Logistics, Inc. (encompassing Ascent Domestic, Ascent International and Ascent On-Demand).

“With the actions announced today, we are left with two companies positioned to deliver significant value for their customers and investors,” said Chris Jamroz, Executive Chairman of Roadrunner Transportation Systems.

Strategic Rationale

Roadrunner’s Board of Directors identified a spin-off of Ascent as a significant opportunity to create shareholder value. Benefits include (1) structuring each business to take advantage of unique growth opportunities in its respective end market; (2) tailoring the business model to its specific long-term strategies; and (3) aligning external financial resources, such as  access to capital markets, and insurance factors, with the unique nature of each business. Additionally, it is expected that corporate spend will be reduced between the two entities by collapsing the Roadrunner Transportation Systems corporate function into the operations of Roadrunner Freight and Ascent Global Logistics.

To read the full release, please click here.

Our previous overage of Roadrunner and its roubles can be found here.