Possible Covenant Sell Out

arkjarhead · Mar 11, 2008

There is a lady in my Algebra class who's husband owns and operates a refer trucking company and brokerage. He operates out of a brokerage office that used to belong to Harold Ives Trucking and now belongs to Covenant. It's called Transplace in Stuttgart,AR. They rent out spaces for different carriers and bokerages to operate out of. They are mainly small companies.

Anyway we were talking today and she told me Covenant is selling out. They are supposed to be selling everything. All the power units, trailers, terminals, and offices. Everything Covenant owns. Even Southern Refrigerated is going to be sold. Southern has 2 terminals and no telling how many power units and trailers. This is going to be a big sale. They also said they would break the company up and sale it in peices. They were telling the people at Transplace this to see if they would be interested in buying anything. Supposedly they would sale the whole thing for 9.2 billion. I knew they were big, but I didn't realize they were that big.

OntarioVanMan · Mar 11, 2008

I believe Covenant also owns U.S. Express...they are big....I didn't know they owned Southern though.

arkjarhead · Mar 11, 2008

Covenant bought Southern quite a few years ago. Right about the same time they bought Harold Ives out. Maybe a little bit before. That has been some where between 10-15 years ago. The agreement between Southern and Covenant was the Southern trucks would still say Southern on them, they would still be that pink color, the former owner would run the show, and one of his sons would take over upon his retirement as long as they continued to turn a profit.

arrbsthw · Mar 12, 2008

I believe that Covenant and US Express are owned by
brothers. Each brother owns one of the companies. I read
that in one of the trucking magazines. They had an article on
Covenant.

charlee · Mar 12, 2008

actually they are owned by cousins.......but if they sell it is like ms carriers selling to swift.

-charlee

arkjarhead · Mar 13, 2008

From what I understand they are selling to get out of the business.

riverrat · Mar 13, 2008

arkjarhead said:
From what I understand they are selling to get out of the business.

They probably see the writing on the wall and are getting out while the getting is good,lol

Scuba · Mar 13, 2008

Yes Covenant and US Xpress are owned by the same family not sure if its brothers or what but i do remember reading that they are in the same family. While i feel bad for the drivers if it's true it does open up freight for those that do stay alive. My understanding is that the pumpkin patch is going to cut 1200 trucks. They are going to move more non time critical freight to the trains.