Post by HardTimeTrucker on Jul 27, 2009 15:04:27 GMT -5
Transportation/logistics: Pacer to sell off many key assets to UTSI
Patrick Burnson
Logistics Management, 7/27/2009
CONCORD, Calif.—Pacer International, Inc., a major North American freight transportation and logistics services provider, announced today that it has entered into an agreement with Universal Truckload Services, Inc. and UTS Leasing, Inc. (collectively, UTSI). to sell certain assets.
According to spokesmen, these assets include customer, contractor and agent lists, and owned trailers of Pacer Transport, its specialized heavy-haul trucking operation.
Industry analysts said that the proposed sale suggests that more modal consolidation is being driven by a lagging economy and weaker profit margins. At the same time, the impact on shippers remains to be determined.
“From a shipper’s perspective, this move will only mean that business will remain the same or even improves slightly,” said Ron Hounsell, Vice President & COO of the Labor Development Group. “Outsourcing has been an ongoing trend for some time.”
In connection with its purchase of these assets, UTSI will also assume, subject to receipt of appropriate consents, two real property leases and equipment leases for tractors and trailers used in the operation.
Meanwhile, the sale’s closing, which is subject to customary conditions, is expected to occur in August. Pacer will retain rights to all receivables generated by this trucking operation through the closing date.
Pacer executives were circumspect in their remarks about the sale.
“We believe that UTSI is the right buyer for Pacer Transport and that this is the right time to transition Transport’s people, assets, and customers into the hands of a very capable company where they will complement UTSI’s services portfolio,” said Michael E. Uremovich, chairman and CEO of Pacer.
The Pacer Transport network comprises more than 125 agents, nearly 500 owner-operators, and 99 company trucks. Spokesmen for Universal said that the acquisition may contribute approximately $30 million to $40 million of additional revenues, and that it will not have a material effect on net income for the third and fourth quarters of this year.
Uremovich added that he looks forward to a “smooth transition.”
Patrick Burnson
Logistics Management, 7/27/2009
CONCORD, Calif.—Pacer International, Inc., a major North American freight transportation and logistics services provider, announced today that it has entered into an agreement with Universal Truckload Services, Inc. and UTS Leasing, Inc. (collectively, UTSI). to sell certain assets.
According to spokesmen, these assets include customer, contractor and agent lists, and owned trailers of Pacer Transport, its specialized heavy-haul trucking operation.
Industry analysts said that the proposed sale suggests that more modal consolidation is being driven by a lagging economy and weaker profit margins. At the same time, the impact on shippers remains to be determined.
“From a shipper’s perspective, this move will only mean that business will remain the same or even improves slightly,” said Ron Hounsell, Vice President & COO of the Labor Development Group. “Outsourcing has been an ongoing trend for some time.”
In connection with its purchase of these assets, UTSI will also assume, subject to receipt of appropriate consents, two real property leases and equipment leases for tractors and trailers used in the operation.
Meanwhile, the sale’s closing, which is subject to customary conditions, is expected to occur in August. Pacer will retain rights to all receivables generated by this trucking operation through the closing date.
Pacer executives were circumspect in their remarks about the sale.
“We believe that UTSI is the right buyer for Pacer Transport and that this is the right time to transition Transport’s people, assets, and customers into the hands of a very capable company where they will complement UTSI’s services portfolio,” said Michael E. Uremovich, chairman and CEO of Pacer.
The Pacer Transport network comprises more than 125 agents, nearly 500 owner-operators, and 99 company trucks. Spokesmen for Universal said that the acquisition may contribute approximately $30 million to $40 million of additional revenues, and that it will not have a material effect on net income for the third and fourth quarters of this year.
Uremovich added that he looks forward to a “smooth transition.”