Midwest trucking company Rapid Response now owned by employees

Asset-based carrier sold to employee stock ownership plan

Carrier Rapid Response was sold to its employees. (Photo: Jim Allen/FreightWaves)

Missouri-based trucking company Rapid Response has been sold to its employees under an employee stock ownership plan (ESOP). Investment banking firm ButcherJoseph & Co., which advised Rapid Response on the transaction, announced the closing Friday.

The 40-year-old asset-based carrier specializes in full truckload and less-than-truckload transportation as well as home delivery of appliances and furniture. Rapid Response also acts as a 3PL, touting access to thousands of carriers.

The company lists Walmart, Dollar General and Whirlpool as some of its customers.

“Our business is built on long-term relationships and excellent service,” said Rick Palo, founder and president at Rapid Response. “I believe the ESOP transaction will only help strengthen our commitment to our customers.”

Rapid Response is listed as having 65 drivers and 69 power units, according to Federal Motor Carrier Safety Administration data. The new structure, which went into effect at the end of the year, means the company is now 100% owned by its employees.

“Through a leveraged ESOP sale, we provided liquidity to the seller as well as an opportunity for employees to participate in the future growth of the Company,” said Alberto del Pilar, managing director at ButcherJoseph. 

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.