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SWIFT TRANSPORTATION ANNOUNCES OFFER TO PURCHASE SUBSTANTIALLY ALL OF THE TRUCKLOAD VAN DIVISION ASSETS OF VERNON MILLING COMPANY

 SPARKS, Nev., April 7 /PRNewswire/ -- Jerry Moyes, president and chief executive officer of Swift Transportation Co., Inc. (NASDAQ-NMS: SWFT), today announced that the company has made an offer to purchase substantially all of the truckload van division assets of Vernon Milling Company Inc. ("VMC") of Vernon, Ala. VMC's regional truckload operation is based in Laurens, S.C., and operates 288 tractors and 721 trailers, the majority of which are 53-foot dry vans. The consideration offered by Swift for the assets is: (1) issuance of shares of Swift common stock with an aggregate value of approximately $8.5 million; (2) assumption by Swift of VMC's operating equipment leases; and (3) assumption by Swift of additional liabilities of VMC of approximately $13.9 million. The acquisition is contingent upon satisfactory due diligence investigation and approval by Swift's board of directors. Assuming all conditions are satisfied, the closing is scheduled to occur in May or June of 1993.
 For the 12 months ended July 31, 1992, VMC generated revenues of $28.7 million, and had net income of $933,592. For the six months ended Jan. 31, 1993, VMC generated revenues of $16.9 million, and had net income of $720,000. The vast majority of VMC's revenues and net income are attributable to the truckload van division that Swift has offered to acquire. For the six months ended Jan. 31, 1993, VMC's top 10 customers generated 79.3 percent of its revenues.
 Both Swift and VMC have strong core carrier programs with major shippers. If consummated, the acquisition will allow Swift to expand its service with a major customer currently shared with VMC, and will introduce Swift to new relationships with other national accounts serviced by VMC. Swift believes that consolidation of the two operations will allow it to take advantage of economies of scale.
 Swift is a Delaware corporation that is the holding company for Swift Transportation Co. Inc., a truckload carrier headquartered in Phoenix. Swift has strong regional operations in the Eastern and Western United States, which are complemented by a specialized transcontinental double van operation. Swift is one of the largest truckload carriers in the United States.
 -0- 4/7/93
 /CONTACT: William F. Riley III, CFO, or Jerry C. Moyes, president and CEO of Swift Transportation, 702-359-9031/
 (SWFT)


CO: Swift Transportation Co. Inc.; Vernon Milling Co. Inc. ST: Alabama, Arizona IN: TRN SU: TNM

JB-BP -- LA037 -- 3962 04/07/93 17:57 EDT
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Publication:PR Newswire
Date:Apr 7, 1993
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