Arkansas Best to Shed Clipper LTL
Arkansas Best Corporation has reached an agreement to sell all customer and vendor lists related to Clipper's LTL freight business to Hercules Forwarding Inc. of Vernon, California for $2.6 million in cash. The deal is scheduled to close on December 31, 2003.
Some details related to the sale and costs associated with Clipper's departure from the LTL business will be finalized at or near closing, so final earnings impact of this transaction has not been determined, company officials said. However, the impact is not expected to be material. Through the first nine months of 2003, revenues generated by Clipper's LTL division were $26.7 million.
Upon the completion of the sale, Arkansas Best will continue to own Clipper Exxpress and Clipper Controlled Logistics which will maintain their businesses in the full load intermodal, brokerage and temperature-controlled segments. Through the first nine months of 2003, the revenues generated by Clipper's remaining businesses were $68.8 million.