Rush Enterprises, a San Antonio, TX, holding company that operates a network of Peterbilt heavy-duty truck dealerships, is buying the assets of Oklahoma-based Perfection Equipment Co., a subsidiary of now-bankrupt Transcom USA, for $4.2 million.
Perfection provides medium-duty truck accessories and up-fitting services, along with heavy-duty truck parts. Rush said it intends to integrate Perfection’s operations into its Rush Truck Center system upon completion of the transaction. As a basis of size comparison, Rush said it had revenues of $897.4 million during 2000 while Perfection had revenues of approximately $16.2 million for the same period.
Despite sagging revenues and profits this year, the Perfection acquisition is part of Rush’s expansion efforts. In the third quarter, Rush said its revenues totaled $195.2 million, a 14% decrease from revenues of $226.9 million the same period last year. Net income for the quarter decreased 47.6% to $1.1 million from net income of $2.1 million in the third quarter of 2000.
W. Marvin Rush, the company’s chairman and CEO, has said previously that, even though the truck sales market continues to remain soft, there will be "an increasing number of attractive acquisition opportunities" and that he plans to take advantage of any such opportunities that may arise.