SCS sells Jevic unit, focuses on Saia

By Dave Hannon -- Purchasing, 7/6/2006 2:00:00 AM

Trucking firm SCS Transportation has sold its troubled Jevic unit for an estimated $40 million private investment firm Sun Capital Partners and has made several other changes to focus on its Saia LTL business. The SCS board had concluded that Jevic, which had not made "acceptable levels" of profit for several years, was not core to the company's long-term direction, said Bert Trucksess, CEO of SCS. Trucksess will be stepping down from the CEO position at the end of the year and will be replaced by Rick O’Dell, current president of the Saia Motor Freight LTL division of SCS, which will become the company’s main focus going forward. Also, SCS’ corporate headquarters in Kansas City will be consolidated and relocated to Saia's headquarters in Duluth, Ga. and the entire company will be rebranded as Saia in the second half of 2006. The Saia division’s revenues in 2005 grew 17% while those of the Jevic unit saw a mere 3% increase in a strong year for trucking. In the first quarter of 2006, Saia reported a 23% increase in revenues.

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