Swift Transportation Just Acquired Central Transport Refrigerated

Swift Transportation Co.(SWFT) has acquired privately held Central
Refrigerated Transportation Inc. for about $189 million in cash, expanding the
company's refrigerated trucking services.

The deal is valued at $225 million, including assumed capital lease
obligations and other financial debt.

Central, a truckload carrier specializing in temperature-controlled freight
transportation, generated $504 million in revenue for the 12 months ended June
30. Swift's acquisition of Central is expected to make it the nation's
second-largest temperature-controlled truckload provider, the company said.

Swift Chief Executive Jerry Moyes was the principal owner of Central. Given
Mr. Moyes's interests in the temperature-controlled truckload industry, Swift
created a special committee in May 2011 to evaluate the expansion of its
temperature-controlled operations.

"We are pleased to be acquiring a growing and profitable business at an attractive valuation, diversifying our suite of services," said William Post, chairman of Swift's special committee. "This acquisition will allow Swift to be an immediate player in the over-the-road temperature-controlled market."

The deal is expected to be immediately accretive to Swift's earnings and to
increase full-year adjusted earnings by about 10 cents a share.

Swift, one of the largest truckload carriers in North America, has steadily
improved its revenue every quarter since going public in 2010. The company plans
to grow revenue this year and increasing the utilization of its current fleet
before adding containers.

Shares closed at $17.52 and were inactive after hours. Through the close, the
stock has more than doubled over the past 12 months.
http://online.wsj.com/article/BT-CO-20130806-718386.html?mod=googlenews_wsj

 

Wonder how many Central drivers turn the keys in this week?