Frozen Food Express Industries (FFE), a refrigerated truckload and less-than-truckload carrier in Dallas, TX, has sold off its trailer and refrigeration service subsidiary W&B Refrigeration Service Co.
Those assets, which include accounts receivable, trade names, inventory and equipment as well as a shop and office building, were purchased by Dallas-based W&B Newco L.P., a new company headed by John Chisolm, the current president and general manager of W&B Refrigeration Service Co. With the closing of this sale, FFE will change the name of W&B Refrigeration Service Co. to AirPro Holdings, and W&B Newco, L.P., will change its name to W&B Service Co, L.P.
FFE said this sale is not expected to have a significant impact on its 2001 operating results. The sales price approximated $15 million -- $6.8 million in cash and $4.1 million in subordinated notes, a minority partnership interest in W&B Newco, and the buyer's assumption of approximately $3 million of liabilities related to the business. FFE said the cash proceeds from the sale would be used to reduce its long-term debt, which was about $15 million on September 30, 2001.
Stoney “Mit” Stubbs, Jr., chairman and CEO of FFE, said that the sale is part of an ongoing program to realign the company's operations in light of what he described as changes in the market for refrigerated trucking services.