FFE sells subsidiary

Dec. 28, 2001
Frozen Food Express Industries (FFE), a refrigerated truckload and less-than-truckload carrier in Dallas, TX, has sold off its trailer and refrigeration service subsidiary W&B Refrigeration Service Co. Those assets, which include accounts receivable, trade names, inventory and equipment as well as a shop and office building, were purchased by Dallas-based W&B Newco L.P., a new company headed by John
Frozen Food Express Industries (FFE), a refrigerated truckload and less-than-truckload carrier in Dallas, TX, has sold off its trailer and refrigeration service subsidiary W&B Refrigeration Service Co.

Those assets, which include accounts receivable, trade names, inventory and equipment as well as a shop and office building, were purchased by Dallas-based W&B Newco L.P., a new company headed by John Chisolm, the current president and general manager of W&B Refrigeration Service Co. With the closing of this sale, FFE will change the name of W&B Refrigeration Service Co. to AirPro Holdings, and W&B Newco, L.P., will change its name to W&B Service Co, L.P.

FFE said this sale is not expected to have a significant impact on its 2001 operating results. The sales price approximated $15 million -- $6.8 million in cash and $4.1 million in subordinated notes, a minority partnership interest in W&B Newco, and the buyer's assumption of approximately $3 million of liabilities related to the business. FFE said the cash proceeds from the sale would be used to reduce its long-term debt, which was about $15 million on September 30, 2001.

Stoney “Mit” Stubbs, Jr., chairman and CEO of FFE, said that the sale is part of an ongoing program to realign the company's operations in light of what he described as changes in the market for refrigerated trucking services.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!