J.B. Hunt to Acquire Zenith Freight Lines from Bassett

About this update from Bassett Furniture Industries, Incorporated

[{"type":"text","content":"BASSETT, Va. and LOWELL, Ark., Jan. 31, 2022 (GLOBE NEWSWIRE) -- J.B. Hunt Transport Services Inc (NASDAQ: JBHT), one of the largest supply chain solutions providers in North America, and Bassett Furniture Industries, Inc. (NASDAQ: BSET), a leading manufacturer and marketer of high-quality home furnishings, announced today that Bassett and J.B. Hunt Transport, Inc., the wholly-owned operating subsidiary of J.B. Hunt Transport Services, Inc., have entered into a definitive agreement under which J.B. Hunt Transport will acquire the assets of Zenith Freight Lines, LLC, a wholly-owned subsidiary of Bassett, for approximately $87 million. Upon closing of the transaction, J.B. Hunt and Bassett will enter into a long-term master services agreement whereby J.B. Hunt will continue to provide the exceptional service Zenith has performed for Bassett for almost 50 years. “This investment enhances J.B. Hunt’s furniture delivery capabilities by expanding our nationwide, end-to-end supply chain solution for our customers, and we look forward to establishing a long-term connection with Bassett, a manufacturer and retailer of high-quality home furnishings and a leader in the industry,” said John Roberts, president and CEO of J.B. Hunt. “The sale of Zenith opens an exciting new chapter in our quest to provide the highest level of service to our customers,” said Robert H. Spilman, Jr., Bassett’s CEO and Chairman of the Board. “Disruption caused by the pandemic aside, we believe that the consolidation of traditional specialized furniture transportation is inevitable. As discussions with J.B. Hunt progressed, we came to understand the benefits that the scale of J.B. Hunt could provide in terms of equipment, technology, driver recruitment, intermodal transportation, and warehousing density. In addition, we developed a healthy respect for the management team and their operating culture. We are extremely enthusiastic about the potential to better serve our customers with the 50-year accumulated furniture transportation know-how of Zenith in combination with the power of the J.B. Hunt platform.” Zenith posted revenue of $87 million in the fiscal year ending November 2021, with Bassett representing one-third of its business. The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close by February 28, 2022, subject to cu...

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