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Arnold Transportation Services, Inc. to Be Acquired by Management-Led Group; U.S. Xpress Enterprises to Acquire Minority Interest.

Article Excerpt
CHATTANOOGA, Tenn. -- U.S. Xpress Enterprises, Inc. (NASDAQ/NM: XPRSA) announced today a definitive agreement to participate in the buyout of Arnold Transportation Services, Inc. from Jefferies Capital Partners by Arnold's management team. Arnold's management team is led by Mike Walters, President and Chief Executive Officer, who will continue in this role after the buyout. The transaction is expected to close by the end of November 2004 and is subject to customary conditions to closing, including financing.

Arnold Transportation is a truckload carrier that provides regional, dedicated, and medium length of haul dry van service primarily in the eastern United States. Arnold's principal operating centers are in Jacksonville, Florida; Dallas, Texas; and Camp Hill, Pennsylvania. For 2004, Arnold expects to generate approximately $195 million in revenue, while performing at an operating ratio (operating expenses as a percentage of operating revenue) in the low to mid 90's. Arnold operates approximately 900 owned tractors, 520 tractors provided by owner-operators, and 4,050 trailers.

In the current transaction, Arnold's current management would obtain 51% ownership of Arnold and control of the board of directors. U.S. Xpress would obtain 49% ownership of Arnold and minority representation on the board of directors, as well as a three-year option to purchase management's interest at a specified price based on the current transaction price and a specified annual return. After three years, the management group would have a similar option to buy out U.S....

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