ROADWAY SERVICES, INC. ANNOUNCES MERGER OF SUBSIDIARY WITH CENTRAL FREIGHT LINES INC.
WACO, Texas, March 27 /PRNewswire/ -- Roadway Services, Inc. (NASDAQ-NMS: ROAD) and Central Freight Lines Inc. announced that shareholders of Central approved the merger of Central and a wholly owned subsidiary of Roadway Services. The merger was approved by shareholders holding 81 percent of Central's outstanding shares at a special meeting of shareholders held today in Waco. The company's 4,000 employees own 82 percent of the shares through Central's retirement plan and employee stock ownership plan. Steps will commence immediately to merge the Roadway subsidiary into Central, as provided for under the merger agreement. Upon completion of the merger, which is expected by early April, each share of Central common stock outstanding will be converted into the right to receive $104.50 in cash. The total consideration for the transaction is approximately $102 million. Central is one of the nation's largest regional less-than-truckload (LTL) carriers and was founded in 1925. Central had 1992 carrier operating revenues of approximately $230 million and net income of $7.2 million. It is the largest intrastate Texas motor common carrier. "We are particularly gratified that the people of Central are the shareholders who have approved this merger," said Joseph M. Clapp, chairman and president of Roadway Services. "They are the `pride of Central Freight Lines' and we are proud to be associated with them and their company, which will become a key part of our regional carrier group." Tom Clowe, Central's chairman, president and CEO, said, "We believe, and our shareholders have concurred, that this merger is in the best interest of Central, its shareholders, employees and customers and that our association with Roadway will enable Central to continue to grow and prosper." The acquisition broaden's Roadway's network of regional LTL carriers, which includes Viking Freight System in the west, Spartan Express in the central and southern states, and Coles Express in the New England region. Roadway Services also owns Roadway Express, Inc., one of the nation's largest motor carriers; Roadway Package System, Inc., serving shippers in the small package market; Roberts Express, a critical shipment carrier; and Roadway Logistics Systems, Inc., which provides contract logistics services. -0- 3/27/93 /CONTACT: D. A. Wilson of Roadway Services, Inc., 216-384-2378, or Tom Clowe, Jr. of Central Freight Lines Inc., 817-772-2120/ (ROAD)
CO: Roadway Services, Inc.; Central Freight Lines Inc. ST: Texas IN: TRN SU: TNM
SM -- NYSA002 -- 0259 03/27/93 16:54 EST
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|Date:||Mar 27, 1993|
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