Ranked among the 10 largest trucking organizations in the U.S., J.B. Hunt increased its footprint by purchasing Zenith Freight Lines for $87 million.
Founded in 1961, J.B. Hunt grew from a modest five-truck operation to a nationally-recognized carrier possessing more than 12,000 semi-trucks, 100,000 trailers, and a workforce that reportedly exceeds 24,000. The Fortune 500 company recently made waves by brokering a deal that will bolster its less-than-truckload (LTL) operations and final-mile capabilities. The Conover, North Carolina-based Zenith is a subsidiary of the Basset Furniture Industries that posted $87 million in revenue over a one-year period. Zenith, primarily an LTL outfit, managed approximately one-third of Basset’s deliveries.
“The sale of Zenith opens an exciting new chapter in our quest to provide the highest level of service to our customers,” Bassett’s CEO Robert H. Spilman Jr reportedly said. “Disruption caused by the pandemic aside, we believe that the consolidation of traditional specialized furniture transportation is inevitable. As discussions with J.B. Hunt progressed, we came to understand the benefits that the scale of J.B. Hunt could provide in terms of equipment, technology, driver recruitment, intermodal transportation, and warehousing density.”
The buyout is expected to close on Feb. 28, and J.B. Hunt anticipates handling Basset furniture moving forward. A long-term deal is expected to remain in place. Should the 12-month revenue generated by Zenith hold, J.B. Hunt will have essentially purchased a business that may pay for itself. Zenith’s LTL service area and terminals cover all of New England, across the north as far as Wisconsin, the Southwest, California, and Southern states, with the exception of West Virginia and Kentucky.
“This investment enhances J.B. Hunt’s furniture delivery capabilities by expanding our nationwide, end-to-end supply chain solution for our customers, and we look forward to establishing a long-term connection with Bassett, a manufacturer and retailer of high-quality home furnishings and a leader in the industry,” J.B. Hunt CEO John Roberts reportedly said.
The acquisition augments J.B. Hunt’s already dominant final-mile capacity that includes Canada, Mexico, and the entire continental U.S. Generating revenue upwards of $842, the LTL segment works off a network of 116 locations that leverage 3.5 million square feet of warehousing and logistics space.
“The sale of Zenith to J.B. Hunt represents the culmination of our life’s work in the furniture transportation industry,” Zenith president Jack L. Hawn reportedly said. “Becoming a part of J.B. Hunt will advance the quality service we have established by providing scalable, efficient solutions to the furniture industry.”
According to financial reporting, Basset Furniture Industries (NASDAQ: BSET) opened trading up 5 percent on the news. J.B. Hunt is expected to finance the acquisition with cash on hand, as it reportedly did with recent purchases of Mass Movement, RDI Last Mile, and Cory 1st Choice Home Delivery. The trucking organization posted a revenue rate that exceeds $12 billion annually.
Sources: freightwaves.com, nwaonline.com, furnituretoday.com
They got the money to buy another trucking company but they pay their drivers poorly and treat them horribly! That’s why drivers sue the company all the time!!
Big company big business small paycheck
I think you are speculating there. When I retired from them, I was in the six figure bracket. They are the industrial leaders in pay, home time, overall satisfaction. Great equipment, no OTR, dedicated runs, super good people, just one of the better places to work as a driver today.
I drove for Jb hunt from 1992 to 2001. They went thru a lot of changes, I quit because I moved to Florida. All in all a great company, I knew Mr. Hunt and his family when he was alive. I sometimes wish I hadn’t quit, I was a million miler in 5 yrs at hunt on a dedicated automotive run. Got in trouble for it, then my mile’s dropped so I quit. If you can stand slow trucks 68 mph, can probably live anywhere now, it’s a good company. Bonuses come for being a safe and good driver. Not sure if this is still the same at JB Hunt but when I was there it was, 1st million mile safe driving, a ring with 1 Diamond, $5000.00 check and a banquet and motel accommodation, 2 million miles, $10,000. Check same bennies, 3 million miles a Check for $20,000. Or a new car at that amount.👍👍👍and each banquet another Diamond for the ring
Amazing how different drivers view a company, hope all goes well for them
I worked for J.B. Hunt for 3 years on a dedicated account. It was the best trucking company I ever worked for. They did what they said they were going to do from the start and treated me with respect. I left there because of medical reasons. I had worked for 7 other trucking companies, but usually only 2 to 6 months each. If you have integrity in what you do, J.B. Hunt will treat you as a professional.
It’s all capitalism my friend. It makes sense that they’d buy a company already established in their operational territory. I drove for JB Hunt on their Home depot flatbed ( moffet) account in NYC. Pay was decent for a 6day work week. Had no major complaints with office personnel. Left because I purchased my own truck.