Transit Group has signed a letter of intent to acquire the container and intermodal marketing company operations of Land Transportation, LLC, for $18.5 million.
As a part of the same transaction, Transit Group will also acquire the related RFS brokerage operations from ROCOR International. Land and ROCOR International are privately held companies under common control.
The transaction is expected to be completed in the fourth quarter of 1999.
Combined annual sales for these operations are about $65 million. The largest portion of the business to be acquired, container freight, is coordinated from Land's Atlanta facility using 29 independent agents in locations across the country and a fleet of approximately 460 owner-operators.
"This transaction is strategically important for Transit Group in that it establishes a platform for the Company's growth in the important Atlanta market, where our corporate headquarters are located," says Transit Group's President and Chief Executive Officer Philip A. Belyew. "This proposed transaction also supports our goal of enhancing the company's operational flexibility by increasing the proportion of owner-operators in our fleets."
Transit Group, headquartered in Atlanta, is a holding company in the business of acquiring and consolidating short-, medium- and long-haul trucking companies, particularly truckload carriers.