SCS Transportation Sells Jevic Unit for $40 Million

June 30, 2006 4:30 PM, EDT

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CS Transportation said Friday it has completed the sale of its Jevic Transportation truckload and less-than-truckload unit to an affiliate of Sun Capital Partners for $40 million.

The deal also includes $12 million in income tax benefits from structuring the transaction as an asset sale for tax purposes, SCS said. It estimated transaction fees and expenses of $1 million.

SCS said it will record a non-cash after-tax charge of $47 million or $3.15 per share in the second quarter. Jevic will be reported as a discontinued operation.

The company had come under pressure from one of its major investors earlier this year to sell Jevic, which has not been as profitable as its Saia Motor Freight Line unit. (Click here for previous coverage.)

SCS “will now be comprised solely of Saia Motor Freight Line, our leading multi-regional LTL carrier,” Bert Trucksess, SCS’ chairman and chief executive officer, said in a statement.

SCS is ranked No. 24 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.