Duff Brothers Capital announced July 15 it is buying all of the outstanding shares of common stock of Frozen Food Express, as the FFE board of directors unanimously approved the transaction.
FFE is valued at $38.2 million — $2.10 per share of common stock. Duff Brothers is owned by Thomas and James Duff, who also indirectly own KLLM Transport.
Russell Stubbs, president and CEO of FFE, said the company has been changing in the last year or so to exit segments of its business that are less profitable, like dry van, and devote resources to more profitable areas, like bulk tank water. “As part of this process, we were pleased when the Duffs expressed an interest in FFE. We believe the value of this transaction achieves our objective of delivering immediate and compelling value for our shareholders.”
FFE stockholders will receive $2.10 in cash for each outstanding share of FFE common stock they own — a 23.5 percent increase from the July 12 closing price. The transaction is expected to close in late August or early September.
FFE’s chairman, its president and CEO and its COO all entered into a separate agreement with Duff Brothers for their aggregate 12.8 percent of shares of FFE common stock.