Echo Global Logistics inks definitive agreement to acquire Roadtex

Chicago-based third-party logistics and technology-enabled transportation services provider Echo Global Logistics said this week that it has inked a definitive agreement to acquire Somerset, N.J.-based Roadtex Transportation Corporation, a national provider of integrated temperature-controlled supply chain services, for the confectionary, food, nutrition, and pharmaceutical mass retailer end-markets.

A purchase price was not disclosed.

Established in 1922, Roadtex maintains a base of 32 strategically located food grade cross dock facilities, five of which are VAWD (value-added warehousing and distribution) facilities that provide a suite of contract logistics services, and it supports a diverse group of blue-chip clients, managing their time and temperature sensitive product shipments. The company delivers customized, end-to-end services that Echo said “exceed the stringent pickup, handling, delivery and chain of custody requirements of customers serving attractive, recession-resistant end markets with favorable, long-term growth prospects. What’s more, Roadtex’s network covers 85% of the United States population within a 24-hour shipping period, according to Echo.

Echo officials said that this deal meshes the Roadtex national warehouse footprint and advanced temperature-controlled transportation services to Echo, with Roadtex customers benefitting from Echo’s truckload brokerage and expanded transportation management services.

“We've been following Roadtex and are very impressed with their capabilities,” said Doug Waggoner, Chief Executive Officer of Echo, in a statement. “With this transaction, Echo not only adds a national warehouse footprint but also broadens its temperature-controlled service offerings and customer base.”

And Dave Menzel, President and Chief Operating Officer at Echo, said in the same statement that Roadtex brings an expertise with temperature-controlled deliveries into big box retail that few can match.

“Not only will this help Echo expand in this area, but we are also bringing on an experienced, well-regarded management team led by co-founders Bruno Ciacciarelli and Bob Kelly, and we are excited about the opportunity to partner with them,” said Menzel.

Bob Kelly, Co-Founder, Head of Sales & VAWD at Roadtex, noted that because Roadtex interacts with 100% of the top 10 big box retailers on a daily basis, it has a long-standing relationships and expertise that it looks forward to bringing to Echo.

This represents the first acquisition Echo has made since it was officially acquired by global private equity firm The Jordan Company in November 2021.

In January, Echo’s Waggoner told LM that Jordan is a great partner and has been very supportive of Echo.

“We are actively working on M&A and doubling down on our technology investments,” he said. “It has been a breath of fresh air, and they are a great partner. I did enjoy the people and the relationships I formed with Wall Street and institutional investors, but it is a pretty big distraction…they want to see the CEO and you spend a lot of time telling the same story over and over again. I can divert that energy to building the business now.”

When asked, at that time, if Echo would be announcing some M&A-related news in 2022, he said: “Yes, we will. I can tell you that, because we are not public anymore and do not have to be ‘guarded.’ We are working on deals as we speak.”