Yellow Makes Offer For Jevic Transportation
Overland Park, Kan.-based Yellow announced the offer today after Jevic's board of directors on Sunday agreed to recommend that its shareholders accept the tender offer.
Jevic will become part of a new multi-regional transportation services holding company that is expected to compete with companies such as Con-Way Transportation Services, Menlo Park, Calif., and USFreightways Corp., Rosemont, Ill., which offer nationwide regional trucking services.
Yellow is the parent of long-haul unionized less-than-truckload carrier Yellow Freight System and three nonunion regional LTL fleets: Saia Motor Freight Line serving the South and Southeast; WestEx serving California and the Southwest; and Action Express serving the Pacific Northwest and Rocky Mountain states.
Jevic reported revenue of $226.1 million and had net income of $9.3 milllion in 1998.
Yellow Chairman A. Maurice Myers said a search is underway for a president to run the regional carrier group.
Jevic will operate as a separate, stand-alone company with existing management, Yellow said.
Jevic founder Harry Muhlschlegel, who will remain as chief executive officer, said the deal "will provide the capital and technology required for swifter and more targeted market penetration."
"We see both cost saving and revenue generating opportunities," he said.
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