Panther Sale getting closer....

OntarioVanMan · May 4, 2012

Looks like a new boss for you Panther people...

May 3 (Reuters) - Trucking company Arkansas Best Corp is in talks to buy logistics firm Panther Expedited Services Inc from private equity firm Fenway Partners for more than $150 million, two sources familiar with the matter said.

XPO Logistics and private equity firms Jordan Co and MidOcean Partners have also made offers, the sources said.

Trucker Arkansas Best in talks to buy Panther Expedited-sources | Reuters

LisaLouHoo · May 4, 2012

So NOW can Jeff and I run around the truckstops putting "Free Kittens" signs on all the Panther vehicles????

Sent from my ADR6300 using EO Forums

pearlpro · May 4, 2012

Fenway Partners is a direct investor in U.S. – based mid-market businesses that typically range in size from $100M to $600M in enterprise value at the time of acquisition.

Fenway invests in businesses that Fenway believes possess fundamental strengths that provide both stability and significant upside opportunity, but are performing at levels below their full potential. Fenway works in partnership with management to leverage its accumulated experience, industry-specific knowledge and network of value-added resources to help businesses enhance their performance and strive to achieve their full potential.

Arkansas Best

headquartered in Fort Smith, Arkansas, is a freight transportation services and solutions provider whose largest subsidiary, ABF Freight System, Inc., accounts for more than 90% of its revenue. In service since 1923, ABF has evolved from a local less-than-truckload (LTL) motor carrier into a global provider of customizable supply chain solutions. Utilizing an innovative dual-system network for regional and transcontinental transportation, ABF is a leader in cargo care, claims prevention, security, safety, and technological innovation. ABF customer service centers and distribution facilities are located throughout North America and reach around the globe. The ABF portfolio of customizable logistics services starts on the overseas manufacturer’s floor and ends with a domestic delivery that is customized to the client’s choosing.

Might be a better fit logistically, a more dedicated trucking concern...

Moot · May 4, 2012

Time to dust off my old Teamster hat?

davekc · May 4, 2012

ABF might like that aquisition but I don't see their union liking it. Might be a tough sale. Unions are going to fight any merger with a non-union outfit.

Moot · May 4, 2012

I don't understand ABF's interest in Panther, if there really is any interest. If ABF has cash laying around why not buy a regional LTL, expand into TL or invest more into their core LTL in preparation for the eventual demise of YRC.

I think XPO is a more likely suitor.

davekc · May 4, 2012

Moot said:
I don't understand ABF's interest in Panther, if there really is any interest. If ABF has cash laying around why not buy a regional LTL, expand into TL or invest more into their core LTL in preparation for the eventual demise of YRC.

I think XPO is a more likely suitor.

Probably true although I wouldn't be a fan of a XPO purchase because they are heavy rate cutters and their current drivers run for quite a bit less. That likely would equal a reduction in pay for current Panther contractors. Hard to tell how a XPO purchase would have any value to the actual contractors. Maybe more loads? Maybe at a lesser rate? Quite a few things to look at.
That bit with them cutting their own drivers pay by .10 cents wouldn't have set too well with me either. Total screw over of their contractors, although Jacobs didn't own them at the time.

OntarioVanMan · May 4, 2012

davekc said:
Probably true although I wouldn't be a fan of a XPO purchase because they are heavy rate cutters and their current drivers run for quite a bit less. That likely would equal a reduction in pay for current Panther contractors. Hard to tell how a XPO purchase would have any value to the actual contractors. Maybe more loads? Maybe at a lesser rate? Quite a few things to look at.
That bit with them cutting their own drivers pay by .10 cents wouldn't have set too well with me either. Total screw over of their contractors, although Jacobs didn't own them at the time.

Well if XPO were to buy them..the first order would likely be...new contracts....same rate across the board...none of this some have .85 or .77 nonsense....they'd get the same as E-1 drivers get now...It would be too complicated to operate with two different systems...within the same company.

davekc · May 4, 2012

OntarioVanMan said:
Well if XPO were to buy them..the first order would likely be...new contracts....same rate across the board...none of this some have .85 or .77 nonsense....they'd get the same as E-1 drivers get now...It would be too complicated to operate with two different systems...within the same company.

That would be the problem. That would be a rate cut for most trucks. Not sure on vans but for straights it would amount to a .06 to .15 cent per mile cut. Actually more than that because they have that structured fuel surcharge where they keep part of it. The other change I believe would be in the DH. They give up 100 miles per load and we don't. If all that was to happen, I would either become a competitor or I might have to call John.

Moot · May 4, 2012

As a contractor I wouldn't welcome a sale to XPO. I agree with OVM that the first order of business would be new contracts. Yipee, another pay cut!

If ABF were to purchase Panther, I wouldn't foresee any immediate changes. This should be interesting to follow to see how it all shakes out.

davekc · May 4, 2012

If XPO took over and came out with new contracts with what they pay now, there will be a mass grab from other carriers wanting their Panther trucks. I would feel comfortable that within 90 days, Panther will lose better than half its fleet under those circumstances.

Jumbuck · May 4, 2012

davekc said:
ABF might like that aquisition but I don't see their union liking it. Might be a tough sale. Unions are going to fight any merger with a non-union outfit.

Maybe on paper but not in practice...they did nothing to stop Con-way from merging with Consolidated and then later closing down Consolidated Freightways. There are untold cases of Double-Breasting which means running a non-union company right along side of a union company and then later closing down the union side because "they are not making enough money money!" It has happened numerous times since 1982 when trucking was deregulated. I can almost guarantee the Teamster will let it happen. Oh, they will make a good showing, they may (but I doubt it) even go so far as to set up "informational pickets" which mean absolutley nothing, but I'll bet you ABF will own Panther in no time and they will probably change the name to "leapord" or Tiger but it WILL happen.

moose · May 4, 2012

Well, ABF just reported an 18.2 Mil.$ loss for 1st quarter, in line with same quarterly loss last year.
those company shares are shrinking fast.
the good news is they attribute mach of it for "High workers compensation",
which normally show a union or executives that collect more then they needs, on the share holders dime.

may panther be their bailout.

dabluzman1 · May 5, 2012

Well, I for one would rather it be XPO vs ABF.
eX Panther Operator sounds better to me than
Another Bought Feline.

Good luck with any changes.

Dynamite 1 · May 5, 2012

to us, a purchase by ABF does make some sense. they do have a time definite guarantee service they offer. if they are reporting losses due to w/c payouts and possibly high union wages what better way to reduce costs. i mean, they could cut employees by using o/o for there time service freight and also by using them to pick up said freight. which in doing so would reduce ABF's operating expense and hourly wage expense. instead of all the cross docking and trailer swapping the freight simply gets put on a truck and delivered. expedited trucks can make multiple stops and pick ups. this would also get them smaller units for home delivery [ liftgate service]. all of this would allow them to still operate their ltl service as always on a more regional model and still offer a nation wide service with a time guarantee.

just our opinion after thinking about it. we did alot of this at conway and they were quite successful and profitable at it. ABF has alot of customers that they could give this service as an option to. thats what conway did when the ltl option didnt meet transit times. they reached in the pocket and pulled the option out to still do business with the carrier of the customers choice and meet their transit needs. the more options you have for your base customers the easier it is to get them to stay with you. this would give them a value plus to their business and cut cost.

Moot · May 5, 2012

Jumbuck said:
...they did nothing to stop Con-way from merging with Consolidated and then later closing down Consolidated Freightways.

Con-Way never merged with Consolidated Freightways. In 1983 Consolidated Freightways Inc. (the corporation) started up 3 separate, Con-Way branded regional carriers that specialized in next day and 2nd day freight deliveries. In 1996 Consolidated Freightways Inc. (the corporation) spun off Consolidated Freightways (the long-haul motor carrier) as a separate publicly traded company. The 3 Con-Way carriers were brought together and renamed Con-Way Freight and the corporation is now know as Con-Way Inc.

On Monday, September 2, 2002 Consolidated Freightways ceased operations and locked the doors. That particular Monday happened to be the first Monday of the month of September, which is also when Labor Day is celebrated in this country. Coincidence or statement?

Moot · May 5, 2012

Dynamite 1 said:
to us, a purchase by ABF does make some sense. they do have a time definite guarantee service they offer.

Almost all LTL carriers have some type of time definite, guaranteed service. I can't see how Panther would fit with ABF. To me, XPO seems the most logical player that is mentioned in the Reuters piece. One name that isn't mentioned is UPS. If Panther is truly up for sale, I would think UPS may be a player.

scottm4211 · May 5, 2012

Probably coincidence.

OntarioVanMan · May 5, 2012

Moot said:
Almost all LTL carriers have some type of time definite, guaranteed service. I can't see how Panther would fit with ABF. To me, XPO seems the most logical player that is mentioned in the Reuters piece. One name that isn't mentioned is UPS. If Panther is truly up for sale, I would think UPS may be a player.

They already bought one...
http://www.joc.com/parcel-package/ups-buy-tnt-express-68-billion