Roadrunner Transportation Systems Announces Planned Separation of Ascent Global Logistics
"With the actions announced today, we are left with two companies positioned to deliver significant value for their customers and investors," said
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
Ascent Global Logistics
Ascent will be headquartered in
Upon successful completion of the spin-off,
Roadrunner Financing
Contemporaneously with the completion of the spin-off, Roadrunner's existing senior secured credit facility with
Upon successful completion of the spin-off,
Transaction Details and Next Steps
The transaction is currently expected to be completed in
In connection with the transaction, Roadrunner will provide to its stockholders and make available on its website an Information Statement that will contain additional information about Ascent and the transaction. Additionally, the equity of Ascent is not expected to be publicly traded.
About
Safe Harbor Statement
This press release may contain forward-looking statements and information relating to, among other things, Roadrunner, Ascent Global Logistics, their respective business plans and strategies, their respective industries and other future events. These statements are often, but not always, made through the use of words or phrases such as "may," "will," "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "predict," "potential," "opportunity," and similar words or phrases or the negatives of these words or phrases. These forward-looking statements are based on Roadrunner's current assumptions, expectations, and beliefs and are subject to substantial risks, estimates, assumptions, uncertainties and changes in circumstances that may cause Roadrunner's actual results, performance, initiatives, or achievements, to differ materially from those expressed or implied in any forward-looking statement. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, Roadrunner assumes no obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date hereof except as required by law. For a full discussion of risks and uncertainties, see the section entitled "Risk Factors" in Roadrunner's Annual Report on Form 10-K for the year ended
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