Arkansas Best
by June 30, 1997 12:00 am 58 views
Arkansas Best Corp. announced that it signed a
definitive agreement to sell Cardinal Freight Carriers Inc. for about
$38 million in cash to an acquisition company organized by Golder,
Thoma, Cressey, Rauner Inc.
The sale is expected to result in a pre-tax gain of $8 million to $9 million, subject to any adjustments in the purchase price under the
terms of the agreement. The net proceeds from the sale, which is
expected to close in July, will be used to pay down bank debt.
Cardinal Freight Carriers is an irregular-route truckload carrier based
in Concord, N.C. For 1996, Cardinal reported revenues of about
$75 million and operating profits of about $4.4 million “on a segment
basis.” Cardinal became an ABFS subsidiary as a result of the 1995
acquisition of WorldWay Corp.
The transaction is subject to, among other things, approval by Arkansas
Best’s lending banks.