Pittsburgh-based R&R Family of Companies has sold its logistics subsidiaries — WLX|WLE (doing business as WLX and Western Logistics Express) — as it continues to unwind parts of its business following weeks of liquidity concerns and employee layoffs.
Minnesota-based CJK Group announced Jan. 15 that it has completed the acquisition of all of the assets of WLX | WLE, according to a news release. Financial terms of the transaction were not disclosed.
WLX | WLE is headquartered in Kansas City, Missouri, and provides logistics and transportation services across the U.S., Canada and Mexico. WLX has 66 trucks and 39 drivers according to the Federal Motor Carrier Safety Administration.
WLX | WLE will continue operating under their existing brands and leadership teams, with no changes to day-to-day operations, CJK Group said.
“This acquisition is an important step in expanding CJK Group’s logistics capabilities,” CJK Group CEO Chris Kurtzman said in a statement, adding that WLX | WLE has built a strong reputation in open-deck and refrigerated transportation.
The divestiture of WLX and Western Logistics Express comes after a series of developments that placed R&R Family of Companies under mounting pressure.
As previously reported by FreightWaves, R&R has faced carrier complaints, executive turnover, tightening credit conditions and questions about lender support, while the company failed to respond to repeated requests for comment.
Earlier this month, FreightWaves reported that R&R was facing uncertainty after the termination of a top executive at one of its subsidiaries and reports from carriers and restructuring professionals that some business units could be facing disruption.
At the time, a source familiar with acquisition discussions told FreightWaves that R&R Family of Companies “is being pursued by a buyer with scale and capability.”
R&R’s situation intensified following the abrupt shutdown of its trucking subsidiary Taylor Express, which shut down immediately on Jan. 12, cutting off fuel cards, rental car access and other company support, leaving at least some drivers sleeping in their trucks while trying to find a way home.
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