UT-based refrigerated carrier, Dick Simon Trucking Inc., along
with its subsidiary, Dick Simon Trucking Inc. will be sold to
TX-based rival, Central Freight Lines Inc (CFL). Central Freight
Lines is a subsidiary of Swift Transportation.
bid is $152 million. According to reports, the deal involves
CFL paying about $100 million for 1,108 of Simon's leased tractors
and 1,969 trailers; $52 million for terminals and other assets;
and assuming about $23 million in debt. Simon Transportation
will join Central Refrigerated Service, a new division of CFL,
when the sale closes April 22.
filed for bankruptcy after being pressed to make payments on
its leased trucks, the company took steps to make it more attractive
to a buyer by slashing its fleet by 40 percent. This move cost
nearly 500 drivers and 3,000 other workers their jobs.
the first to approach Simon with a bid on March 13 and two days
later, CFL said it was pleased with the offer, although Simon
hinted it did have other potential buyers.
means that Simon's workers will keep their jobs, according to
Earl Scudder, an attorney for Jerry Moyes, chairman of Phoenix-based
Swift Transportation Co. Moyes is a majority stockholder in
Simon as well as CFL. "We're downsizing Simon and starting
out with a clean slate with our existing customers," said
Moyes late Tuesday.