Swift will have the opportunity to hire more than 350 company drivers and over 200 independent contractors in Cardinal's van division. Swift will sublease tractors equivalent to the number of drivers hired and Swift will purchase trailers, Qualcomms and miscellaneous Cardinal assets. The total purchase price will not exceed $15 million.
"Since Cardinal's van division operates predominantly in the eastern United States, we expect this acquisition will provide additional opportunities that will complement both our existing and future east coast operations," said Jerry Moyes, Swift CEO.
Cardinal Logistics Management, in announcing the sale, said the move will allow the company to focus on its core businesses in dedicated delivery and logistics management services.
"With the dedicated delivery division firmly established and building a reputation as the best in the business, Cardinal has decided to move away from irregular route freight," said a company press release. This sale completes the transition that began in July with Cardinal's sale of its flatbed division to Deaton.
Swift is the third largest publicly held national truckload carrier in the country, with regional operations throughout the continental United States. Last week they announced they were merging with Memphis, Tenn.-based M.S. Carriers, in which M.S. Carriers will become a wholly owned subsidiary of Swift.