Frozen Food Express Industries, Inc. (FFE – Stock Symbol FFEX) and Duff Brothers Capital Corporation today announced they have entered into a definitive agreement pursuant to which Duff Brothers Capital Corporation will offer to acquire all of the outstanding shares of common stock of FFE (except shares owned by its affiliates) for $2.10 in cash per share of common stock.
Duff Brothers Capital Corporation is wholly owned by Thomas and Jim Duff, who also own KLLM Transport Services, LLC headquartered in Jackson, Mississippi, as well as Southern Tire Mart and T.L. Wallace Construction, both based in Columbia, Mississippi. The transaction between Duff Brothers Capital Corporation and FFE, which values FFE at approximately $38.2 million in equity value, was unanimously approved by the FFE Board of Directors.
The transaction is expected to close by late August or early September, 2013. "For over a year, we have been reviewing a variety of strategic alternatives for FFE," said Russell Stubbs, President and CEO of FFE. "As part of this process, we were pleased when the Duffs expressed an interest in FFE. We believe the value of this transaction achieves our objective of delivering immediate and compelling value for our shareholders.
Through the Duff's ownership of KLLM, they have demonstrated a strong track record in the trucking industry, which will be beneficial to our customers, vendors, employees and drivers." Commenting on the merger Thomas Duff said, "We are excited about the opportunity to add another leader in the temperature-controlled trucking industry to our family group of businesses. With the synergies and increased capacity that we can gain from the ownership of both FFE and KLLM, we know that we will be able to enhance the quality service that both companies have been providing to their customers. With our resources, we will be able to bring to FFE the financial strength that is needed to preserve and expand its operations for its valued employees for years to come.
Overall, we see great things ahead for both of the companies." Frozen Food Express Industries, Inc. is one of the leading temperature-controlled truckload and less-than-truckload carriers in the United States with core operations in the transport of temperature-controlled products and perishable goods including food, health care and confectionery products. Service is offered in over-the-road and intermodal modes for temperature-controlled truckload and less-than-truckload, as well as dry truckload on a nondedicated fleet basis. Additional services include bulk tank water transportation, brokerage/logistics and dedicated services to customers.
Additional information about FFE can be found at www.ffeinc.com.
KLLM Transport Services, LLC is one of the largest exclusively refrigerated carriers in the United
States. Based in Jackson, Mississippi, it has operated over 45 years in the transportation of
perishable commodities, with currently over 1,600 road tractors in operation throughout the
United States. Since the purchase by the Duff brothers in 2008, KLLM Transport Services has
become financially stable, and is a profitable, growing company.
Southern Tire Mart was acquired by the Duffs in 2003, at which time it had annual sales of $67
million and was operating at 14 locations. Under the Duffs’ leadership, Southern Tire Mart has
become the largest independently owned commercial tire dealer and retread manufacturer in
the United States. It currently operates seventeen Bandag manufacturing facilities, 56
commercial service locations and has over 1,500 employees located in eight states with gross
annual revenues of approximately $750 million. With its strategically located retread plants
and service facilities, it effectively services its customers’ needs throughout the South Central
T.L. Wallace Construction is one of the largest contactors in the State of Mississippi. T.L.
Wallace Construction is a leader in the construction of buildings, bridges, highways and public
works projects throughout Mississippi, as well as projects in Louisiana, Texas, Arkansas,
Tennessee, Alabama and Florida.
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