Old Dominion Freight Line Signs Definitive Agreement to Purchase Assets of Priority Freight Lines
Transaction to Expand Service Center Network and Enable Launch of Full-State Coverage in Washington
THOMASVILLE, N.C.--(BUSINESS WIRE)--
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced a definitive agreement to purchase selected assets of Priority Freight Lines, headquartered in Sumner, Washington. Priority Freight Lines produced revenue of approximately $17 million for the year ended December 31, 2006, through its network of eight owned and leased service centers located in Washington, Oregon, Idaho and Utah. Old Dominion plans to operate three of these service centers located in Yakima and Pasco, Washington and Medford, Oregon and consolidate the remainder of Priority's operations with its existing network of 184 service centers. By the end of April 2007, Old Dominion expects to complete the transaction, which includes the purchase of revenue equipment, accounts receivables, office equipment, IT systems and one service center facility.
Earl E. Congdon, Chairman and Chief Executive Officer of Old Dominion, remarked, "Priority Freight Lines is a well-run company with a strong franchise in its four-state market and has built an excellent reputation for providing quality transportation service. With this acquisition, we will launch full-state coverage in Washington, our 38th state with full-state coverage, and enhance our direct coverage in Oregon. This transaction is consistent with our growth and service strategies and is also in keeping with our focus of expanding and improving our multi-regional and inter-regional network."
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 the asset purchase of Priority Freight Lines and produce the anticipated benefits from the transaction; (2) the competitive environment with respect to industry capacity and pricing; (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 five 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, South Central, Northeast, Midwest and West regions of the country, including 37 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 April 17, 2007