Central Bolsters Service With Purchase Of Jaguar

In an attempt to improve its service in Arizona, Central Freight Lines, Waco, Texas, has agreed to acquire the business and assets of Jaguar Fast Freight of Phoenix in a stock transaction. The deal is expected to push back Central’s plans for an initial public stock offering.

Jaguar is an intrastate less-than-truckload carrier in Arizona and serves as a local agent for Central, which provides direct service to all points in Texas, New Mexico, Oklahoma, Louisiana and Arkansas and interregional service to Chicago, St. Louis, Kansas City, Mo., and Memphis, Tenn.

Both companies are controlled by Jerry Moyes, president of Phoenix-based Swift Transportation Co. and chairman of Central.

The merger with Jaguar will allow Central to better market its regional services, according to Tom Morehouse, senior vice president of sales and marketing.

“Our customers told us they wanted, and needed, our services from and to Arizona,” he said.

aguar operates about 120 tractors and 350 trailers and has 11 company-owned terminals. It generated revenue of about $16 million in 1998.

Central President Joe Hall said Jaguar’s business will operate as a self-contained region of Central Freight Lines, with Jaguar President R. Kent Chapman serving as regional operations director and director of sales Larry Rockwell as regional sales director. Central’s other regions cover northern Texas, Oklahoma and Kansas; western Texas, New Mexico and Colorado; and eastern Texas, Louisiana, Mississippi and Memphis, Tenn.

The Jaguar deal is expected to close within 45 days, and approximately 250 Jaguar employees will make the jump, Central officials said.

Jaguar was formed in January 1996 from the combination of three carriers: Arizona Pacific Freightways, Pioneer Freightways and Highland Trucking. It acquired the LTL business of Hurley Trucking of Phoenix in 1998.

It is unclear whether the Jaguar merger will affect plans by Central to sell 5 million shares of common stock this summer. The company filed a registration statement with the Securities and Exchange Commission in May.

“It’s going to delay it,” said Moyes, “but it will obviously make it more attractive when we do come out with it. We’re probably shooting for the fall.”

According to Central’s Morehouse, any delay in the stock offering would be due to market conditions and not the Jaguar transaction.

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