Court Approves Allied Sale to Jack Cooper
A U.S. Bankruptcy Court in Wilmington, Del., has approved the sale of most of Allied Systems Holdings’ operating assets to Jack Cooper Transport Co. as part of a $135 million deal that would consolidate the carhaul sector of trucking.
Judge Christopher Sontchi signed the order Sept. 17 after Allied said Sept. 12 that Cooper was the successful bidder. Employees for Allied and Cooper are organized by the Teamsters union.
Jack Cooper attorney Jesse Austin III confirmed the court’s approval and said the deal must pass muster with the Justice Department on antitrust grounds. Closing must occur by Dec. 31, he said.
Cooper and Allied are, respectively, the nation’s largest and third-largest carhaulers, according to the Transport Topics Top 100 list of for-hire carriers. The merged company would have nearly $1 billion in annual revenue generated by almost 4,000 trucks, Cooper executives have said.
“This is as good an outcome as we could have hoped for,” said Roy Gross, director of the Teamsters carhaul division. The union had opposed Allied’s purchase by two investment firms. Cooper executives were not available for comment.
Allied’s carhaul operations will be merged into Jack Cooper’s, although Axis Group will remain as a separate logistics operation, Cooper Chairman Michael Riggs told TT.
The merged company will have 70 to 75 terminals.
“We had unanimous support — and I think that was important to the judge — from the Teamsters, the Canadian Auto Workers, customers and creditors, all were on record in support,” Riggs said. “This was a very good event.”
|By Jonathan S. Reiskin|
Associate News Editor
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