Swift Agrees to Buy Merit for $50 Million

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ruckload carrier Swift Transportation Co. Inc. has agreed to purchase refrigerated carrier Merit Distribution Services for $50 million, the companies said Friday.

Merit Distribution Services is owned by McLane Co. Inc., a Temple, Texas-based grocery and food service distributor that has been a subsidiary of Wal-Mart Stores Inc.

Also Friday, Wal-Mart said it planned to sell McLane Co. to Berkshire Hathaway Inc. (Click here for the full story.)

Phoenix-based Swift is ranked No. 13 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies. In 2002, Swift earned $63.5 million or 73 cents a share on $2.1 revenues of billion.

"Wal-Mart is currently our largest customer, and we believe this transaction will significantly enhance our presence and relationship with them," said Jerry Moyes, Swift's chairman and chief executive.

Merit Distribution Services said its primary business consists of dedicated regional trucking fleets that serve Wal-Mart's grocery centers and retail stores. It had sales of more than $140 million in fiscal 2003 and has 1,110 employees, the company said.

The transaction is expected to be closed by the end of May.

(Click here for the full press release.)

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