A Maryland investment firm has bought Dixie Trucking Co. Inc. and Service Transport Inc. for $28 million, and will merge them into one company based in Cookeville, TN.
Bethesda, Md.-based American Capital Strategies will be the majority shareholder in the combined company, operating as STACAS Holdings Inc.
Jeff MacDowell, a principal at American Capital, said the merger creates a company that will provide overnight and second-day ground transportation services within 12 contiguous states throughout the Midwest and Southeast. Following the combination, the company will have more than 900 employees and serve thousands of customers. American Capital began investing in Dixie Trucking in 1999 to support a management buyout. Dixie CEO Jim Crisp, who was president of Saia Motor Freight, will assume leadership of the merged company. "With American Capital's backing, we have created a far more valuable company, becoming a significant player in our industry," Crisp said.