Arkansas Best

by Talk Business & Politics ([email protected]) 57 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.