Business
ArcBest® Announces Sale of FleetNet America® and Increased Share Repurchase Program
Cox Automotive, a division of Cox Enterprises, Inc.™, acquires FleetNet America® for $100 millionArcBest's board has increased the company's share repurchase
About this update from Arcbest Corporation
[{"type":"text","content":"Cox Automotive, a division of Cox Enterprises, Inc.™, acquires FleetNet America® for $100 millionArcBest's board has increased the company's share repurchase program authorization to $125 millionFORT SMITH, Ark., Feb. 28, 2023 /PRNewswire/ -- ArcBest® (Nasdaq: ARCB), a leader in supply chain logistics, has reached an agreement, following a process that began in early 2022, to sell FleetNet America®, a provider of fleet maintenance and repair services, to Cox Automotive Mobility Solutions, Inc., a division of Cox Enterprises, Inc.\n\n \n \n \n \n \n \n\n \n\"FleetNet has been a valuable part of ArcBest, giving us insight and expertise in equipment maintenance and repair. As an integrated logistics company, it is no longer core to our growth strategy,\" said Judy R. McReynolds, ArcBest chairman, president and CEO. \"We've enjoyed working with the wonderful team at FleetNet and have benefitted greatly from their innovative mindset.\"\nThe sale is effective February 28, 2023. Terms of the transaction include a cash payment at closing of $100 million, subject to certain tax and other customary adjustments, customary representations and warranties of the seller, FleetNet and Cox Enterprises. On a preliminary basis, ArcBest expects to receive proceeds, net of tax and transaction expenses, of approximately $75 million and to record an estimated after-tax gain of approximately $50 million on this transaction.\nIn addition, ArcBest announced that its board of directors has increased the total amount available under the company's common stock repurchase program to $125 million.\n\"The sale of FleetNet and our strong balance sheet puts us in a great position to accelerate our return of capital to ArcBest's shareholders,\" added McReynolds.\nAdditional Information \nStephens Inc. acted as financial advisor to ArcBest for the transaction. Vinson & Elkins acted as legal advisor to ArcBest. BakerHostetler acted as legal advisor to Cox Automotive.\nAbout ArcBest\nArcBest® (Nasdaq: ARCB) is a multibillion-dollar integrated logistics company that helps keep the global supply chain moving. Founded in 1923, and now with over 15,000 employees across more than 250 campuses and service centers, the company is a logistics powerhouse fueled by the simple notion of finding a way to get the job done. Through innovative thinking, agility and trust, ArcBest ...