As trucking bankruptcies large and small grab headlines, investors still see potential in small trucking companies and are buying them.
According to a filing with the US Securities and Exchange Commission (SEC), 1847 Holdings, a New York-based public holding company, is acquiring Illinois-based truckload carrier Patriot Transport for $35 million. The deal includes several Patriot-affiliated companies.
With slower freight demand and lower truckload rates putting smaller trucking companies under pressure and making their owners more willing to sell, those who want to purchase trucking assets and acquire drivers will find more opportunities. And they may want to use those assets and drivers to bolster regional next-day and same-day freight operations.
Patriot Transport is a Chicago-based carrier offering next-day distribution services, both truckload and less-than-truckload (LTL), from terminals in Carol Stream, Illinois; South Brunswick, New Jersey; Charlotte, North Carolina; and Sacramento, California. The company’s website says it has about 240 tractor-trailers, including refrigerated equipment. The acquisition also includes Chicago-based Expeditor Systems, which has 120 tractor-trailers, according to Federal Motor Carrier Safety Administration registration data.
The $35 million acquisition price includes $21 million in cash and an 8 percent subordinated promissory note on $14 million in principal. The purchase price is subject to a post-closing earnings adjustment agreement.
The SEC filing did not include any comment on why 1847 Holdings, which owns St. Louis-based appliance retailer Goedeker’s and Neese Inc., an Iowa-based agricultural supplier, is acquiring Patriot Transport. But distribution is listed as one of its core interests, along with niche light manufacturing, specialty retail, and consumer and industrial services.