No End to Consolidation Trend

Consolidation continues to dominate the financial scene in trucking. In the past week alone, three truckload carriers, a leasing company, a distribution firm and a truck parts distributor announced deals.

• M.S. Carriers, Memphis, Tenn., will buy certain assets of Interstate Trucking Corp. of America, a dry van truckload carrier based in Merrill, Wis.

The price was not announced, but M.S. Carriers Chairman Michael Starnes said he expects to hire 280 drivers, enter into short-term leases for ITC’s power units and purchase 803 trailers. ITC’s operations will be integrated into M.S. Carriers.

“Along with providing much needed capacity to our network, this acquisition will give M.S. Carriers a greater presence in both the upper Midwest and the paper industry,” Mr. Starnes said.

The transaction is subject to a number of conditions, including due diligence and approval of M.S. Carriers’ board of directors. It is expected to close in mid-November.

Mr. Starnes said the acquisition should add to earnings by the first quarter of 1999.

• P.A.M. Transportation Services, Tontitown, Ark., will acquire assets of Decker Transport of Riverdale, N.J., for an undisclosed amount of cash.

The deal is subject to completion of a due diligence investigation and certain regulatory approvals.

ecker is a truckload carrier with 1997 revenue of about $48 million, according to P.A.M.

“We believe this acquisition will provide a number of synergies and also provide a more diverse customer base to complement our dedicated business,” P.A.M. President Robert W. Weaver said.

he companies plan to close the transaction at the end of this year.

• Transit Group, Atlanta, will add a Mississippi-based truckload carrier for a combination of cash and stock.

The Mississippi company, whose name was not released, generates $21 million in annual revenue and is operating profitably, Transit Group said.

The purchase is subject to due diligence, financing and other conditions and is expected to be completed in the 1998 fourth quarter.

Transit Group President Philip Belyew said the acquisition will increase the company’s share of the truckload freight market and immediately add to earnings.

Transit Group has made 11 acquisitions since it began consolidating trucking companies in June 1997.

• Aim Leasing Co., Girard, Ohio, expanded its truck rental and leasing business in the Chicago area and the Southwest with the purchase of assets from Refrigerated NationaLease of Chicago.

The deal included more than 800 pieces of equipment and added 75 employees to Aim’s payroll, plus new locations in Elmhurst, Ill., and Phoenix.