Frozen Food Express Industries Acquired by Duff Brothers Capital
Frozen Food Express Industries, Inc., Dallas, Texas, and Duff Brothers Capital Corp., Columbia, Miss., entered into a definitive agreement pursuant to which Duff Brothers Capital will offer to acquire all of the outstanding shares of common stock of FFE (except shares owned by its affiliates) for $2.10 in cash per share of common stock. Duff Brothers Capital is wholly owned by Thomas and James Duff, who also indirectly own KLLM Transport Services, LLC. The transaction, which values FFE at approximately $38.2 million in equity value, was unanimously approved by the FFE board of directors.
"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," says Russell Stubbs, president and CEO of FFE. "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. Through the Duff's ownership of KLLM, they have demonstrated a strong track record in the trucking industry, which will be beneficial to our customers, vendors, employees and drivers."