Kitty Hawk, through its newly created wholly owned subsidiary Kitty Hawk Ground, has agreed to purhcase the operating assets of privately held Air Container Transport for $5 million in cash and stock. ACT operates an airport-to-airport less-than-truckload ground freight network primarily in California, Oregon, Washington, British Columbia, Colorado, Utah, Illinois and Texas. In 2005, ACT had revenue of $44.5 million.
Focused expecially on the I-5 corridor from southwest Canada to San Diego, ACT operates in 26 cities offering air and ground freight delivery as well as local pick up and delivery services. The ACT fleet is comprised of approximately 150 owned, leased and owner-operator dedicated trucks.
The closing of the asset purchase is anticipated to occur during the second quarter of 2006 and is subject to various closing conditions.