FFE purchased the privately owned trucking and cold storage warehousing company for cash and deferred payments based on a percentage of revenue generated by Nordic over a period of time. Nordic's current annualized revenue is approximately $10 million. During 1998, FFE generated approximately $100 million from its coast-to-coast LTL operations.
In addition to up to 25 tractors and drivers, FFE gets a cold-storage warehouse and an existing customer base, located in Kansas City, MO, where Nordic is based.
Stoney M. (Mit) Stubbs, Jr., chairman and chief executive officer of FFE said the acquisition was "an excellent blending of two like businesses."
"We expect the synergism of our combined LTL traffic patterns to produce better results than either company could produce individually," Mr. Stubbs said. "Nordic's cold-storage warehousing business is a natural extension of temperature-controlled logistics and we are excited to enter this segment of the business with an existing facility that has a customer base and an operating history."
Rich Moline, founder and owner of Nordic, said he expects a quick blending of the two companies' operations. "Although we're much smaller than the Frozen Food Express LTL operation," he explained, "we have the same culture of superior-quality service that FFEX is known for."