SCS buying Clark Brothers
Feb 17, 2004 12:00 PM
Kansas City-based LTL conglomerate SCS Transportation has bought Nebraska-based regional LTL carrier Clark Bros. Transfer and plans to integrate Clark into its Saia Motor freight subsidiary.
Clark Brothers, which generated revenue of $66 million last year, operates in 10 Midwest states, with major hubs in Chicago, St. Louis, Minneapolis, and Kansas City.
SCS is paying $30.5 million for Clark Brothers, which includes $21.7 million for the purchase of all outstanding equity, $6 million for the assumption of debt, and $2.8 million to structure the transaction as an asset sale for tax purposes. SCS said the transaction is being financed from cash balances, existing revolving credit capacity, and a $6.2 million seller note.
James D. Clark, president of Norfolk, NE-based Clark, said he sold his family’s business to SCS primarily to keep the company alive.
"As a family-owned carrier for the past 68 years, our primary concern has been the long-term interests of our customers and employees,” he said in a statement. “Joining Saia and SCS ensures a promising future as part of a growing, financially strong company.”
Clark Brothers employs roughly 600 employees and operates a fleet of 370 tractors and 600 trailers. Saia, SCS’s $521 million subsidiary based in based in Duluth, GA, employs 5,200 and has a fleet of 2,250 tractors and 7,750 trailers. The Clark acquisition will help Saia serve 29 states via 127 terminals, said SCS.
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