Continental American Transportation Inc. announces acquisition of Carpet Transport Inc.POTTSTOWN, Pa.--(BUSINESS WIRE)--Nov. 16, 1995--Continental American Transportation Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :COAW) announced Thursday that it has signed a purchase agreement to acquire 100% of the stock of Carpet Transport Inc. and two affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , A&P Transportation Inc. and Chase Brokerage Inc. The transaction is valued at $17,290,000 in cash, stock, and mortgages. Continental American Transportation formed a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Carpet Transport Holdings Corp. to make the acquisition. As part of the agreement, Continental acquired a state-of-the-art trucking facility in Calhoun, Ga., as well as properties in Baton Rouge Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La.; Orlando, Fla.; and Tampa, Fla., which were owned individually by the shareholders of Carpet Transport Inc. The total assets of Carpet Transport Inc. as of June 30, 1995 were $63,753,724, with shareholders equity of $9,845,424. A&P Transportation Inc. reported total assets of $3,028,172 and shareholders equity of $631,111 as of Sept. 30, 1995. Revenues from the operations of Carpet Transport for the fiscal year ended June 30, 1995 were $62,184,269, with net income before taxes of $2,660,561. Revenues for A&P Transportation for the 10-months ended Sept. 30, 1995 were $18,263,635, with net income before taxes of $92,068. Carpet Transport and A&P Transportation are the trucking industry's premier carriers of textile products. The companies operate 750 late-model tractors and 2,000 late-model trailers through 17 terminals nationwide. The jointly operated state-of-the-art facility in Calhoun, Ga., is considered one of the most modern freight consolidation operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. that specifically serves the carpet and textile industry. Continental American Transportation Inc. stated that the operations of Carpet Transport and A&P Transportation would remain independent and autonomous. Continental management anticipates no changes to current personnel, equipment purchases or operational procedures The detailed methods by which headquarters and units carry out their operational tasks. of Carpet Transport and A&P Transportation. The two company names will be retained due to their excellent reputation, name recognition, and nationwide customer relations. On a consolidated pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, Continental American Transportation expects a seven-fold increase in gross revenues, net income and shareholders equity. Timothy Holstein, president and chief executive officer of Continental American Transportation Inc., stated: "We are very excited about the marriage of our two companies. Due to the size and nationwide presence of Carpet Transport and its affiliated companies, we consider this a strategic merger rather than an acquisition. "This combination of interests allows us to further capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. and grow Carpet Transport in order to meet the increased demands of its customers. From Continental's perspective, this business combination allows us to dovetail dovetail (dov´tāl), n a widened or fanned-out portion of a prepared cavity, usually established deliberately to increase the retention and resistance form. other targeted strategic acquisitions." Continental American Transportation Inc. is an acquisition-oriented company engaged in the management of operating businesses in the transportation, distribution and logistics of wholesale and retail goods. CONTACT: Continental American Transportation Inc., Pottstown Bryan Henninger, 610/327-8275 or Investor Resource Services Inc., Winter Park, Fla. Dixie Campbell, 407/657-1300 |
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