Old Dominion Freight Line Signs Definitive Agreement to Purchase Montana-Based Bob's Pickup & Delivery
Transaction to Enable Full-State Coverage in Montana and Direct Service throughout the Continental U.S.
THOMASVILLE, N.C.--(BUSINESS WIRE)--
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) today announced the signing of a definitive agreement to purchase selected assets of Bob's Pickup & Delivery ("BP&D"), headquartered in Sidney, Montana. BP&D produced annual revenue of approximately $10 million through its network of 12 service centers in Montana and one in Bismarck, North Dakota. Upon the completion of the transaction, which is expected this week, Old Dominion will integrate BP&D's route structure and service center operations into its network, combining the Bismarck service center with its existing service center and adding the 12 Montana service centers to its existing service center network. As a result, Old Dominion will operate 204 service centers providing direct services to all 48 states in the continental U.S. The Company will also initiate full-state coverage in Montana, the 39th state in which Old Dominion provides this service.
Earl Congdon, Executive Chairman of Old Dominion, said, "We are very pleased to announce this transaction, which not only adds a high quality franchise to our operations, but also enables us to achieve a milestone of providing direct service in each of the lower 48 states. In 28 years serving the LTL market, Bob's built a reputation for outstanding service and reliability. We look forward to enhancing that reputation by providing Bob's customers with our comprehensive product offerings and our world-class multi-regional and national network."
Robert (Bob) Bell, who with his sons, Randy and Raymond, operates BP&D, stated, "This transaction with Old Dominion presents tremendous opportunity for our customers and employees. Our company has prospered through the years in part because of the 'family culture' that permeates our organization. We are impressed with the spirit of the 'OD family' at Old Dominion. Because of the similarities of our companies in this regard, we believe our customers and employees will find a good home with Old Dominion."
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, after the completion of the BP&D transaction, will provide direct service to 48 states within the Southeast, Gulf Coast, Northeast, Midwest, Central and West regions of the country, including 39 states within which it will provide 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 February 11, 2008