Yesterday, Swift Transportation Company announced it has acquired Central Refrigerated Transportation of West Valley City, Utah.
According to a press release, the transaction is valued at $225 million: $189 million in cash and $36 million of assumed capital lease obligations and other debt.
Central Refrigerated is the 5th-largest temperature-controlled truckload service carrier in the U.S. The company generates $504 million in revenue, plus $50 million in earnings before taxes each year. The acquisition will make Swift the second largest temperature-controlled truckload carrier.
“The transaction has been structured to allow synergies to be realized according to an integration plan developed in collaboration with Central management, with cost savings opportunities in the areas of maintenance, fuel and facilities, among others, and revenue opportunities from new and existing customers,” the press release states.
Swift Special Committee Chair William Post said, “We are pleased to be acquiring a growing and profitable business at an attractive valuation, diversifying our suite of services. This acquisition will allow Swift to be an immediate player in the over-the-road temperature controlled market.”
Richard Stocking, Swift’s President and Chief Operating Officer, said, “It makes perfect sense for Swift and Central to combine their businesses at this time. Our customers are looking for comprehensive solutions to their transportation needs and this combination will enable us to better serve them.”