Old Dominion Freight Line Signs Definitive Agreement to Purchase Assets of Bullocks Express Transportation, Inc.
Will Expand Service Center Network and Enhance Coverage in the Southwest and Western Regions of the U.S.
THOMASVILLE, N.C.--(BUSINESS WIRE)--
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced that it has signed a definitive agreement to purchase selected assets of Bullocks Express Transportation, Inc, headquartered in Denver, CO. Bullocks Express Transportation currently generates annualized revenue of approximately $17 million through its network of eight service centers in Arizona, Colorado, New Mexico, Texas and Utah. The transaction, which Old Dominion expects to complete before year-end, includes the purchase of selected assets that primarily consist of revenue equipment, office equipment and information systems. Old Dominion intends to combine Bullocks Express Transportation's eight terminal operations and their entire route structure with Old Dominion's network, increasing the ODFL network to 192 service centers. Through the acquisition, Old Dominion Freight Line will gain an additional service center in Farmington, NM.
Earl E. Congdon, Chairman of the Board of Old Dominion Freight Line, Inc., said, "Bullocks Express Transportation, Inc is a well-run company with a strong franchise in its five-state market. They have built an excellent reputation for providing quality transportation service. This transaction, which will be the second we complete in 2007, is consistent with our growth and service strategies. As we continue to build Old Dominion's multi-regional and inter-regional network, we expect to evaluate additional opportunities to achieve our goals through both organic growth and acquisition."
Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual events and results to be materially different from those expressed or implied herein, including, but not limited to, the following: (1) the Company's ability to complete and successfully integrate acquired businesses and assets and produce the anticipated benefits from such transactions; (2) the competitive environment with respect to industry capacity and pricing, including with respect to fuel surcharges; (3) the negative impact of any unionization of the Company's employees; (4) the challenges associated with executing the Company's growth strategy; (5) various economic factors such as economic recessions and downturns in customers' business cycles and shipping requirements; (6) the availability and cost of fuel; (7) difficulty in attracting or retaining qualified drivers; (8) the Company's exposure to claims related to cargo loss and damage, property damage, personal injury, workers' compensation, long-term disability and group health and the cost of insurance coverage above retention levels; (9) the Company's significant ongoing cash requirements; (10) the availability and cost of new equipment; (11) the costs of compliance with, or liability for violation of, existing or future governmental regulation; (12) seasonal trends in the industry, including the possibility of harsh weather conditions; (13) the Company's dependence on key employees; (14) changes in the Company's goals and strategies, which are subject to change at any time at the discretion of the Company; and (15) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
Old Dominion Freight Line, Inc. is a less-than-truckload multi-regional motor carrier providing one-to-five day service among six regions in the United States and next-day and second-day service within these regions. Through its four product groups, OD-Domestic, OD-Expedited, OD-Global and OD-Technology, the Company offers an array of innovative products and services that provide direct service to 47 states within the Southeast, Gulf Coast, Northeast, Midwest, Central and West regions of the country, including 38 states within which it provides full-state coverage. In addition, through marketing and carrier relationships, Old Dominion provides service to and from the remaining states as well as international services around the globe.
Source: Old Dominion Freight Line, Inc.
Released December 11, 2007