Old Dominion Freight Line announced Tuesday, April 17, that it has signed a definitive agreement to purchase selected assets of Priority Freight Lines, a privately-held company headquartered in Sumner, Wash. By the end of the month, Old Dominion expects to complete the transaction, which includes the purchase of revenue equipment, accounts receivables, office equipment, information technology systems and one service center facility. Terms of the acquisition were not announced.
Priority Freight Lines produced revenue of about $17 million for the year ended Dec. 31 through its network of eight owned and leased service centers located in Washington, Oregon, Idaho and Utah. Old Dominion says it plans to operate three of these service centers located in Yakima and Pasco, Wash., and Medford, Ore., and consolidate the remainder of Priority’s operations with its existing network of 184 service centers.
“Priority Freight Lines is a well-run company with a strong franchise in its four-state market and has built an excellent reputation for providing quality transportation service,” says Earl E. Congdon, chairman and chief executive officer of Thomasville, N.C.-based Old Dominion. “With this acquisition, we will launch full-state coverage in Washington, our 38th state with full-state coverage, and enhance our direct coverage in Oregon. This transaction is consistent with our growth and service strategies, and is also in keeping with our focus of expanding and improving our multiregional and interregional network.”
Old Dominion is scheduled to announce its first-quarter 2007 financial results on the morning of Thursday, April 26.