FORT SMITH, Arkansas — Supply chain logistics company ArcBest has reached an agreement to sell FleetNet America, a provider of fleet maintenance and repair services, to Cox Automotive Mobility Solutions, Inc., a division of Cox Enterprises, Inc.
The deal was announced in a Feb. 28 news release.
“FleetNet has been a valuable part of ArcBest, giving us insight and expertise in equipment maintenance and repair. As an integrated logistics company, it is no longer core to our growth strategy,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “We’ve enjoyed working with the wonderful team at FleetNet and have benefited greatly from their innovative mindset.”
The sale is effective Feb. 28.
The news release noted that the terms of the transaction include a cash payment at closing of $100 million, subject to certain tax and other customary adjustments, customary representations and warranties of the seller, FleetNet and Cox Enterprises.
On a preliminary basis, ArcBest expects to receive proceeds, net of tax and transaction expenses, of approximately $75 million and to record an estimated after-tax gain of approximately $50 million on this transaction, according to the news release.
In addition, ArcBest announced that its board of directors has increased the total amount available under the company’s common stock repurchase program to $125 million.
“The sale of FleetNet and our strong balance sheet puts us in a great position to accelerate our return of capital to ArcBest’s shareholders,” McReynolds concluded.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.