Michael S. Walters, president and chief executive officer of Arnold Transportation Services of Jacksonville, Fla., said he will purchase the company that he has directed for the past 4-1/2 years from Roadway Corp.
With the backing of private equity firm, Jefferies Capital Partners, Walters will pay about $55 million in the transaction, which is expected to be completed in the first quarter of 2003. The company will continue to be known as Arnold Transportation Services.
"It's really been one of my goals to take the company from the beginning," Walters said.
ATS was acquired by Roadway in 2001 as part of its purchase of Arnold Industries Inc. Since Roadway's primary interest in Arnold Industries was for its LTL division, the ATS truckload freight system was an awkward addition. "It's a good company with good management, but it just did not fit our strategic model," said John Hyre, spokesman for Roadway. "So when the right offer came along, we thought it was good to sell it."
According to Walters, ATS will gross $172 million in sales this year and $185 million in 2003. He says expansion over the next few years is imminent with a focus on the company's southeast, northeast and southwest markets. Walters maintains that ATS has what it takes to standout from other truckload carriers. "We're large enough to compete from a capacity standpoint, yet we're small enough to basically be on a first-name basis with our customers."
Arnold Transportation Services is an irregular route and dedicated truckload motor carrier, specializing in short-haul regional operations. The company uses more than 800 company-owned tractors, 500 owner-operators and 4,200 trailers.
With the backing of private equity firm, Jefferies Capital Partners, Walters will pay about $55 million in the transaction, which is expected to be completed in the first quarter of 2003. The company will continue to be known as Arnold Transportation Services.
"It's really been one of my goals to take the company from the beginning," Walters said.
ATS was acquired by Roadway in 2001 as part of its purchase of Arnold Industries Inc. Since Roadway's primary interest in Arnold Industries was for its LTL division, the ATS truckload freight system was an awkward addition. "It's a good company with good management, but it just did not fit our strategic model," said John Hyre, spokesman for Roadway. "So when the right offer came along, we thought it was good to sell it."
According to Walters, ATS will gross $172 million in sales this year and $185 million in 2003. He says expansion over the next few years is imminent with a focus on the company's southeast, northeast and southwest markets. Walters maintains that ATS has what it takes to standout from other truckload carriers. "We're large enough to compete from a capacity standpoint, yet we're small enough to basically be on a first-name basis with our customers."
Arnold Transportation Services is an irregular route and dedicated truckload motor carrier, specializing in short-haul regional operations. The company uses more than 800 company-owned tractors, 500 owner-operators and 4,200 trailers.
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