Arkansas Best Corp., Fort Smith, Ark., has sold its G.I. Trucking Company subsidiary for approximately $40 million in cash to a company formed by senior executives of G.I. and Estes Express Lines of Richmond, Va.
G.I. and Estes have been long time partners in ExpressLINK, a North American transportation partnership of four regional LTL carriers.
Arkansas Best will retain ownership of three California terminal facilities and has agreed to lease them to G.I. for a period of up to four years. G.I. has an option to purchase the terminals for $20 million, which approximates their current market value. These facilities have a book value of approximately $6 million.
"G.I.'s management is excited about this opportunity," said Robert A. Young III, Arkansas Best president and CEO. "They believe G.I. has excellent prospects for continued growth and success in the coming years. As for Arkansas Best, the cash from this sale will allow us to make further reductions to our outstanding debt."
Founded in 1946, G.I. Trucking is one of the five largest western states-based, non-union regional LTL carriers. Estes Express Lines, founded in 1931, is a family owned and operated LTL carrier providing service to 33 states with its network of over 100 terminals.
G.I. and Estes have been long time partners in ExpressLINK, a North American transportation partnership of four regional LTL carriers.
Arkansas Best will retain ownership of three California terminal facilities and has agreed to lease them to G.I. for a period of up to four years. G.I. has an option to purchase the terminals for $20 million, which approximates their current market value. These facilities have a book value of approximately $6 million.
"G.I.'s management is excited about this opportunity," said Robert A. Young III, Arkansas Best president and CEO. "They believe G.I. has excellent prospects for continued growth and success in the coming years. As for Arkansas Best, the cash from this sale will allow us to make further reductions to our outstanding debt."
Founded in 1946, G.I. Trucking is one of the five largest western states-based, non-union regional LTL carriers. Estes Express Lines, founded in 1931, is a family owned and operated LTL carrier providing service to 33 states with its network of over 100 terminals.
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