Frozen Food Express Industries, Inc. Announces Agreement on Dry Freight Assets
October 24, 2011
On October 5th, 2011, Frozen Food Express Industries, Inc. (Nasdaq: FFEX) announced that it would restructure its dry freight service offerings. This announcement advised that the Company intended to sell approximately 435 dry van trailers, which account for all of the Company’s dry van trailer fleet, and further reduce its fleet by 290 tractors during the fourth quarter as a result of the reduction in the dry van services.
Today, the Company is pleased to announce it has reached an agreement with Celadon Trucking Services, Inc. (“Celadon”) to sell substantially all of the trailers and most of the tractors to Celadon. In a joint statement with Paul Will, President and COO of Celadon, Russell Stubbs, President and CEO of the Company issued the following statement: “Celadon is a major provider of quality dry van services to the shipping public in the United States, Canada, and Mexico. We are pleased to work with a quality organization such as Celadon to accomplish the goals we announced on October 5th. Additionally, I’m pleased to announce that we have successfully worked with our dry van customers to insure there are no service interruptions during our transition and as stated in our October 5th press release, we will continue to provide dry freight services through use of our refrigerated fleet on lanes that make economic sense for both our customers and our Company. We are pleased that we were able to complete this transaction so quickly and professionally, and appreciate the professionalism shown by Paul Will and his team in completing this transaction.” Mr. Stubbs continued, “We will continue to aggressively grow in our core business, which is temperature controlled LTL and Truckload transportation by providing the best service available anywhere in the marketplace.”
Paul Will added, “Celadon is pleased to complete this transaction with FFE in an expedient manner and continue with our goals to build our driver pool, increase our fleet size and expand our overall capacity in our dry van business, which is the core business offering of our company. I appreciate the dedication and professionalism displayed by both companies as we have worked to execute a seamless business transition with respect to drivers and shippers.”