Roadway sells ATS

| 12/31/2002

Akron, OH-based Roadway Corp. will sell its subsidiary Arnold Transportation Services, the company announced Dec. 30.

A management group led by Michael S. Walters, Arnold's president and CEO, and Jefferies Capital Partners, a private equity firm, will purchase the division in a $55 million transaction that is expected to close by the first quarter of 2003.

Jacksonville, FL-based ATS uses 500 owner-operators along with its 800 company-owned tractors and 4,200 trailers. The firm is an irregular route and dedicated truckload carrier that specializes in short-haul operations in the Northeast, Southeast, Midwest and Southwest regions of the United States.

The change could be good news for the owner-operator segment of the industry. A spokesman for Roadway said ATS was looking to increase the number of owner-operators it works with.

"He (Walters) will be retaining his current drivers and looking for additional drivers," John Hyre, director of public relations at Roadway, told Land Line Dec. 30.

Roadway acquired ATS in November 2001 as part of its purchase of Arnold Industries Inc.

-By Mark Reddig, associate editor