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Heartland Express acquires Millis Transfer for US$150m
Heartland Express, Inc., one of North America’s largest and most profitable truckload transportation companies, announced that it has acquired 100% of the equity of dry van truckload carrier Millis Transfer, Inc. and related entities, for aggregate value of approximately $150 million.
Michael Gerdin, Chairman, President, and CEO of Heartland, commented: “We are very pleased to welcome everyone at Millis to Heartland Express. We are impressed with the high quality of the driving professionals and the organization’s safety profile. In addition, the regional coverage, equipment, conservative and disciplined management style, and culture are all very compatible with our approach. The current Millis Family management team has over 113 years combined experience and will remain with the business in their current roles. We expect Millis to contribute to our ongoing success immediately, and with opportunities for further improvement, get even better over the long term.
”Mr. Gerdin continued, “We will fund the purchase price and pay off the assumed debt with existing cash. After the transaction, our financial strength and liquidity remains strong. We expect to end the 2019 year with approximately $50-60 million in cash, zero debt, and approximately $90 million available under our revolving line of credit. With an average fleet age (including the Millis fleet) of approximately 2 years for tractors and approximately 4 years for trailers, our capital expenditure requirements for the next several quarters are modest, absent opportunistic purchases. Millis has an outstanding fleet of equipment and we look forward to utilizing their fleet and professional drivers to serve our combined group of customers.”