McCormick Backing Off Plans to Buy Trism

The restructuring of Trism Inc. (TSMX) into a truckload carrier specializing in hazardous freight has caused Edward L. McCormick, the company’s former chairman and chief executive, to retreat from his plan to purchase a controlling interest in the firm.

On Aug. 22, the financially troubled Kennesaw, Ga.-based corporation announced it was paring back its presence as a hauler of heavyweight and extra-large freight, by closing what it calls its Specialized Division. In 2000, the company also sold its Super Heavy Haul Division.

“The closure of the [Specialized] Division reduces the revenue base of the company by more than 50%,” McCormick said from his home in nearby Marietta, Ga.

“This dramatically changes my interest level. I’m going to back off for the time being until I can get a better feel, and maybe I’ll step back in later,” he said.

Company Lawyer Ralph Nelson said Trism is not entirely closing its operations for large and heavy freight. He said Trism will maintain “a modest presence” in those lines.

In addition to its asset-based trucking operations, the corporation also has a logistics division that is still operating. However, a source familiar with the company said that the logistics division could possibly end up being sold within the next six months.

Nelson said the company is currently focusing on its Secured Division, which he said has been its most profitable business. The Secured Division hauls hazardous waste, government munitions, commercial explosives and radioactive waste. Its most prominent recent contract is a five-year, $10.2 million deal to haul radioactive waste for the Department of Energy, which Nelson said is still in place.

As for his plans, McCormick said he may come back to Trism at some point in the future, but right now he is looking at other truckload investment options. He said he is particularly interested in specialized truckload fleets, rather than what he called “generic flatbed and dry van” operations.