Adams Resources & Energy, Inc. (“Adams” or the “Company”) today announced that Service Transport Company (“Service Transport”), Adams’ transportation subsidiary, has executed a definitive agreement with Comcar Industries, Inc. (“Comcar”) to acquire substantially all of the assets of Comcar’s subsidiary, CTL Transportation, LLC (“CTL”).
CTL is a liquid bulk chemical carrier that owns approximately 160 tractor trailer trucks and 320 trailers with primary operations in Alabama, Florida, Georgia, Louisiana, Missouri, Ohio and Texas. Service Transport’s anticipated purchase of CTL’s assets is part of Comcar’s Chapter 11 bankruptcy process as announced on May 17, 2020.
“We are pleased to enter into this strategic transaction given its key benefits on multiple fronts.
The acquisition will allow us to grow the size of Service Transport’s collective fleet of both tractors and trailers by more than 50 percent, as well as expand our operating footprint into four new important markets.
Finally, the transaction offers a compelling valuation for our shareholders and will be immediately accretive to earnings,” said Kevin J. Roycraft, Adams’ Chief Executive Officer.
“We look forward to having CTL’s assets folded into Service Transport and welcoming their experienced drivers and related operations personnel into the Adams’ employee family.
Importantly, Service Transport and CTL utilize similar software and certain other key operating and financial systems, which should result in a fairly seamless integration.
Bottom line, we believe the resulting much larger industry-leading vehicle fleet and operating footprint, along with an expanded pool of best-in-class drivers and support staff, places Service Transport in a strong position for continued long-term success,” said Wade Harrison, President of Service Transport.
Comcar has filed a motion with the Bankruptcy Court for the District of Delaware seeking approval of the asset purchase agreement with Service Transport.
The transaction is subject to customary regulatory approval, including through the bankruptcy court, and closing conditions.
Adams expects to close the transaction as soon as practicable after such regulatory approvals and closing conditions have been satisfied, which is currently anticipated to occur in the third quarter or earlier.
For more information, visit http://adamsresources.com