ArcBest Announces Sale of FleetNet to Cox Automotive
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ArcBest Corp. announced that it has reached an agreement to sell the fleet maintenance and repair services business FleetNet America to Cox Automotive Mobility Solutions.
The terms of the deal include a cash payment of $100 million. It is subject to certain tax and other customary adjustments, customary representations and warranties by all three companies involved.
The Fort Smith, Ark.-based supply chain logistics holding company said Feb. 28 the process to sell the business began in early 2022.
“FleetNet has been a valuable part of ArcBest, giving us insight and expertise in equipment maintenance and repair. As an integrated logistics company, it is no longer core to our growth strategy,” ArcBest CEO Judy McReynolds said. “We’ve enjoyed working with the wonderful team at FleetNet and have benefited greatly from their innovative mindset.”
Cox Automotive said the acquisition will help in its goal of transforming how fleets operate so that every vehicle and service is connected. The company also noted it will help to maximize uptime for fleet customers across North America.
“The market leadership that comes with this joining of our two companies is unmatched in the fleet space,” Cox Automotive President Steve Rowley said. “Empowered by our combined decadeslong legacy, best-in-class customers and service provider networks, and industry expertise, we’re disrupting the status quo and leading the fleet future — but not in the breakdown business — in the problem-solving business.”
We are excited to announce that FleetNet America has been acquired by Cox Automotive.
Read more here: https://t.co/QuQvS7HP9a pic.twitter.com/GZY4qwr4Uj — FleetNet America (@FleetNetAmerica) March 3, 2023
ArcBest expects to receive proceeds of approximately $75 million and to record an estimated after-tax gain of approximately $50 million on the transaction. Its board of directors also increased the total amount available under the common stock repurchase program to $125 million in response to the deal.
“The sale of FleetNet and our strong balance sheet puts us in a great position to accelerate our return of capital to ArcBest’s shareholders,” McReynolds said.
Stephens acted as financial adviser to ArcBest for the transaction while Vinson & Elkins acted as the legal adviser. BakerHostetler acted as legal adviser to Cox Automotive.
ArcBest ranks No. 14 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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