Truckload carrier U.S. Xpress Enterprises Inc. plans to acquire 49% of truckload carrier Arnold Transportation Services Inc., in a deal estimated at $6.4 million. The acquisition is part of a buyout from investment firm Jefferies Capital Partners by Arnold's management team, led by president and CEO Mike Walters, who will continue on in those roles after the buyout.
Arnold expects to post revenues near $195 million in 2004. The carrier, which provides regional, dedicated and medium length of haul dry van service in the eastern U.S., operates 900 owned tractors, 520 tractors provided by owner-operators and 4,050 trailers.
In addition to the minority interest, U.S. Xpress will obtain a three-year option to purchase a controlling stake in Arnold. Should U.S. Xpress choose not to do so within that timeframe, Arnold will have the option to buy out U.S. Xpress' interest.
Arnold is expected to operate independently from U.S. Xpress, utilizing Arnold's current facilities.
U.S. Xpress expects to revenues for 2004 to be just over $1 billion.