Covenant Transport has purchased 100 percent of Star Transportation's outstanding stock from the prior owners in exchange for approximately $40 million in cash. Covenant funded the purchase price
for the stock from available borrowings under its revolving line of credit. In addition, Star had an estimated $42 million in existing debt that became part of Covenant's consolidated obligations as a result of the transaction.
Beth Franklin, Star's chief executive officer, has agreed to consult with Covenant on transition issues for one year, and all stockholders have agreed not to compete with Covenant or Star. Jim Brower, a 20-year veteran of Star and its current president, along with his staff, will remain in place to run Star.
Star Transportation is a short-to-medium haul dry van regional truckload carrier based in Nashville, Tenn. Star operates primarily in the southeastern United States, with shipments concentrated from Texas across the Southeast to Virginia, and an average length of haul of approximately 470 miles. Star has an excellent safety record and its annualized driver turnover recently has been about 90 percent. Star operates a well-maintained fleet of tractors and trailers with an average fleet age of 25 months for tractors and 48 months for trailers.