Frozen Food Express Industries or FFE (FFEX: Quote), an operator of temperature-controlled truckload and less-than-truckload carriers, Monday said it would be acquired by Duff Brothers Capital Corporation, wholly owned by Thomas and James Duff, who also indirectly owns KLLM Transport Services, LLC, for $2.10 per share in cash. The deal, which is a result of strategic alternatives, values FFE at about $38.2 million in equity value, and was unanimously approved by the FFE Board of Directors. The transaction is expected to close by late August or early September.
"For over a year, we have been reviewing a variety of strategic alternatives for FFE, which included exiting less profitable businesses, such as dry van truckload services, entering into the bulk tank water transportation business, and re-engineering our LTL services with technology enhancements that further differentiate our service offerings in the marketplace...," said Russell Stubbs, President and CEO of FFE.
Stephens Inc. is acting as exclusive financial advisor to the FFE Board of Directors and provided a fairness opinion to the FFE Board of Directors. Baker & McKenzie LLP is acting as legal counsel to the FFE Board of Directors. Krage & Janvey, L.L.P. is acting as legal counsel to Duff Brothers Capital Corporation.
by RTT Staff Writer
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