Arnold Transportation Services to be Acquired by Management in Deal With U.S. Xpress
October 22, 2004
U.S. Xpress Enterprises Inc. announced an agreement to participate in the buyout of Arnold Transportation Services Inc. from Jefferies Capital Partners by Arnold's management team.
The transaction is expected to close by the end of November and is subject to customary conditions to closing, including financing.
Arnold Transportation is a truckload carrier that provides regional, dedicated and medium length of haul dry van service primarily in the eastern U.S.
Arnold's maintains operating centers in Jacksonville, Fla.; Dallas, Texas; and Camp Hill, Pa. Arnold owns and operates approximately 900 of its own tractors, 520 tractors provided by owner-operators, and 4,050 trailers.
Arnold's current management will obtain 51% ownership and control of the board of directors. U.S. Xpress would obtain 49% ownership and a three-year option to purchase management's interest at a specified price. After three years, the management group would have a similar option to buy out U.S. Xpress' interest.
Arnold President and CEO Mike Walters would continue to lead the company and Arnold's entire management team is expected to remain in place. Arnold is expected to operate independently from U.S. Xpress.