With 19 terminals located throughout the US, Morgan Southern serves the majority of the country's key intermodal markets. Its customer base consists primarily of direct shippers, intermodal marketing companies, steamship lines and other port and rail related transportation industries.

The acquisition was financed with borrowings under RRTS' existing credit facility. Morgan Southern will continue to operate in its current capacity under the leadership of Ben Kirkland, its head of operations since 1996.

RRTS is a non-asset based transportation and logistics services provider offering a full suite of solutions, including customized and expedited less-than-truckload, truckload, transportation management solutions and intermodal solutions, and domestic and international air.

Mark DiBlasi, president and CEO of RRTS, said: “The Morgan Southern transaction is an excellent fit with our growth strategy - it provides us with a new service offering within our truckload segment and further expands our geographic profile.

“RRTS' sales force will serve as an extension of Morgan Southern's sales efforts to market its intermodal services to new and existing RRTS customers. With growth in international trade and continued improvements in rail efficiency, we believe favorable trends will continue in the intermodal sector for the foreseeable future.”

Peter Armbruster, CFO of RRTS, said: “During calendar year 2010, Morgan Southern generated approximately $57m in revenues and approximately $4m of earnings before interest, taxes, depreciation, and amortization. We expect the Morgan Southern acquisition to be accretive to our net earnings in 2011 and beyond.”

Will the acquisition benefit RRTS?

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