Temperature-controlled truckload and less-than-truckload carrier Frozen Food Express has reached an agreement to be acquired by Duff Brothers Capital. Duff Brothers will purchases all outstanding shares of FFE common stock for approximately $38.2 billion.

The offer is nearly a 24% premium over the price of FFE’s stock at the end of trading on Friday.

Mississippi-based Duff Brothers Capital Corporation is owned by Thomas and James Duff, who also indirectly own KLLM Transport Services. They have been purchasing shares of FFE since last year and early this year indicated they were interested in purchasing the Dallas-based operation.

The transaction is expected to close by late August or early September 2013, after being unanimously approved by the FFE board of directors.

"For over a year, we have been reviewing a variety of strategic alternatives for FFE, which included exiting less profitable businesses, such as dry van truckload services, entering into the bulk tank water transportation business, and re-engineering our LTL services with technology enhancements that further differentiate our service offerings in the marketplace," said Russell Stubbs, president and CEO of FFE.

Earlier this year, Frozen Food Express reported a first-quarter loss of $3.3 million, which was a smaller first quarter loss compared to the $5.6 million loss the same time in 2012.

Stoney M. Stubbs Jr., FFE's chairman of the board, Russell Stubbs along with John Hickerson, FFE's executive vice president and COO, who hold about 12.8% of the outstanding shares of FFE common stock, have each entered into separate agreements with Duff Brothers in which they will sell their share of FFE stock as part of the purchase offer.

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