Duff Brothers Capital has agreed to acquire all of the outstanding shares of common stock of Frozen Food Express Industries, a temperature-controlled truckload and less-than-truckload carrier in the U.S., for $38.2 million.
The transaction, which values FFE at about $38.2 million in equity value, was unanimously approved by the FFE board of directors. If approved by the company’s shareholders, the sale will be worth $2.10 per share. It is expected to close by late August or early September of this year.
“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, in a written statement. “As part of this process, we were pleased when the Duffs expressed an interest in FFE. We believe the value of this transaction achieves our objective of delivering immediate and compelling value for our shareholders.”
“We are excited about the opportunity to add another leader in the temperature-controlled trucking industry to our family group of businesses,” added Thomas Duff, on behalf of himself and his brother, James Duff, who together wholly own the company. “With our resources, we will be able to bring to FFE the financial strength that is needed to preserve and expand its operations for its valued employees for years to come.”