On April 22, 2002, newly formed Central Refrigerated Service, a subsidiary of Central Freight Lines of Waco TX, closed its acquisition of the assets of Simon Transportation Services. The acquisition covers assets for $50 million as well as leased equipment valued at roughly $100 million.
Principal stockholder in Central Freight is Jerry Moyes, president and chief executive officer of Swift Transportation, Phoenix AZ. Central Refrigerated is managed by its president and chief executive officer, Jon Isaacson, formerly CEO of Dick Simon Trucking. The new company will operate roughly 1,500 tractors and 2,200 refrigerated trailers, a reduction from 2,300 tractors and 3,200 trailers operated by Dick Simon Trucking. Isaacson says the company has drivers for its entire tractor fleet and has raised its equipment utilization level to 10,000 miles per month, the level at which Simon Trucking last was profitable.
Central Refrigerated will continue to operate from the existing Simon facilities in Salt Lake City UT and is expected to generate revenue approximating $200 million annually.