Pacer to sell heavy haul trucking division to Universal Truckload
Asset-light logistics provider Pacer gets even lighter by shedding trucking division
Dave Hannon -- Purchasing, 7/28/2009 11:20:29 AM
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Asset-light logistics service provider Pacer International has agreed to sell Pacer Transport, its specialized heavy-haul trucking operation, to Universal Truckload for an undisclosed sum.
Pacer Transport provides specialized trucking services such as oversized loads or shipments in a plant relocation.In a note to clients this week, analysts at Stifel, Nicolaus said, "Pacer Transport is an owner-operator/agent-based flatbed truckload carrier that we believe fits perfectly with Universal's business model. Pacer Transport had been a small yet poor fit with Pacer's intermodal-oriented businesses and was seemingly a constant thorn in Pacer's side due to its inability to consistently generate profits for Pacer's consolidated operations."
Pacer International in May announced a restructuring after reporting its first-ever earnings loss in the first quarter. "We are vigorously implementing financial and commercial measures designed to turn these financial results around," said Brian Kane, CFO of Pacer at the time.
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