Prime to acquire Texas' Ameritruck Refrigerated

by Karen E. Culp

SBJ Staff

Prime Trucking of Springfield has signed a letter of intent to purchase Ameritruck Refrigerated Transport, the largest operating subsidiary of Ameritruck Distribution Corp., of Fort Worth, Texas.

Ameritruck Refrigerated Transport operates six refrigerated carriers it has acquired in the past three or four years, said Robert Low, president and Chief Executive Officer of Prime Inc. The Springfield-based trucking and logistics company sees the opportunity to acquire this company as a way to participate in the consolidation going on in the trucking industry.

"We see this as an opportunity to gain some customers and some of the market we share with common customers. We also hope to gain some management talent and drivers," Low said.

Prime has always been very centralized, keeping the majority of its operation in Springfield. Low said he hopes to centralize the Ameritruck Refrigerated operation in much the same way. The company will become part of Prime, and the trucks it now owns will bear the Prime logo.

"We think our name is strong in the market, that we have a good reputation out there," Low said.

Low said Prime wants to analyze carefully the existing Ameritruck Refrigerated structure and at least minimize the number of its locations, possibly consolidating some of those into Springfield.

"Our strategy of working out of this central location has been very successful and has continued to serve us well as we've grown," Low said.

Ameritruck Refrigerated represents about half of the Ameritruck Distribution Corp.'s organization. Ameritruck Distribution also has a dry trucking operation in addition to the refrigerated division Prime is set to buy.

Ameritruck Distribution has about 500 people in its total operation, with about half of those dedicated to the refrigerated unit. Prime has about 450 employees at its Springfield offices, not counting its drivers. Prime has about 3,000 drivers working for it now.

Though Prime has participated in some acquisitions before, it has never undertaken one this size. Its last comparable acquisition was in 1990, when it acquired a 90-truck operation, Cherokee Lines, an Oklahoma-based operation, Low said.

Prime will take the transaction through Hart-Scott-Rodino, or anti-trust, review and will complete due diligence on the company to be acquired.

The physical plant at Prime continues to expand, as well. The company completed its approximately 30,000-square-foot Plaza building last spring, and is working on completing a 60,000-square-foot Commons building.

The Commons building, built by Killian Construction, is set to be finished during the summer of 1999, Low said. Following completion of that addition, which will house driver amenities, some office space and a large cafeteria, Prime will work on a 20,000-square-foot tractor-repair building, Low said.

Though the refrigerated business continues to be the major portion of the company, Prime also has a flatbed division and a logistics operation which comprise the rest of the company. Low said the company will continue to focus on expanding its flatbed operation and on improving its overall business.

"We owe the success of this company to our associates and drivers. They're out there trying to do well and the company overall is receiving the benefit from it," Low said.

[[In-content Ad]]