CHATTANOOGA, Tenn. ? (December 8, 2004) ? U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA) today announced it has completed the acquisition of a 49% interest in Arnold Transportation Services, Inc. for $6.2 million in cash.
Arnold`s management team, led by President and Chief Executive Officer Mike Walters, now has 51% ownership of Arnold and is expected to remain in place. U.S.
Xpress has 49% ownership of Arnold and minority representation on the board of directors, as well as a three-year option to purchase management`s interest at a specified price based on the current transaction price and a specified annual return. After three years, the management group would have a similar option to buy out U.S. Xpress` interest in Arnold. Arnold will operate independently from U.S. Xpress utilizing Arnold`s current facilities.
U.S. Xpress will not guarantee or be obligated on any of the borrowings or other obligations of Arnold. U.S. Xpress does not expect to consolidate Arnold`s financial results and anticipates accounting for the post-transaction operations using the equity method of accounting.
U.S. Xpress Enterprises, Inc. is the fifth largest publicly owned truckload carrier in the United States, measured by revenue. The Company provides dedicated, regional, and expedited team truckload services throughout North America, with regional capabilities in the West, Midwest, and Southeastern United States. The Company is one of the largest providers of expedited and time-definite services in the truckload industry and is a leader in providing expedited intermodal rail services. Xpress Global Systems, Inc., a wholly owned subsidiary, is a provider of transportation, warehousing, and distribution services to the floorcovering industry and provides airport-to-airport transportation services to the airfreight and airfreight forwarding industries through a network of 81 locations in North America. The Company also offers logistics services through its joint ownership of Transplace, an Internet-based global transportation logistics company.
Arnold Transportation Services, Inc. is a privately held dry van truckload carrier headquartered in Jacksonville, Florida, and offers regional, dedicated and medium length of haul service primarily in the Northeast, Southeast, and Southwest United States.