Not long after surrendering the reins at Swift Transportation, Jerry Moyes is now in the process of absorbing Waco, TX-based regional LTL Central Freight Lines into one of the freight companies he owns.
Under the terms of the agreement, all Central stockholders – other than Moyes and Moyes family trusts, which already own 31.5% of the carrier – get cash in an amount equal to $2.25 per share of Central common stock, representing a 16.8% premium over the average closing price of the carrier’s stock for the last 90 trading days.
Moyes, who founded Swift in 1966 and served as its chairman & CEO for nearly four decades, decided to step down from both of his executive positions in November last year. He also removed himself from the board of Central – which lost money over the last two years – after clashing with the International Brotherhood of Teamsters over his role in directing business from Central to some of the other freight companies he owns.
The sale of Central to Moyes, however, is getting the thumbs up from the carrier’s board of directors and management team. “This transaction represents an endorsement of our ongoing commitment to provide our customers with excellent value and service,” said Bob Fasso, Central’s president & CEO. The deal is expected to be finalized by the end of the second quarter this year.