Justice Department requests additional info about A.O. Smith sale; Roadrunner Transportation Systems acquires Georgia firm
Justice Department requests additional info about A.O. Smith sale
A.O. Smith Corp. and Regal Beloit Corp. have each received a request for additional information and documentary material from the U. S. Department of Justice regarding the sale of A. O. Smith Electrical Products Company to Regal Beloit.
The request will extend the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 as amended until 30 days after both companies have complied with the requests.
The request may be subject to modifications suggested by the companies provided the Department of Justice agrees to the modifications. A. O. Smith and Regal Beloit are gathering information to respond to the requests and are working cooperatively with the Department of Justice as it reviews the proposed transaction.
The companies entered into a definitive agreement on Dec. 12 in which A.O. Smith will sell its Electrical Products division to Regal Beloit for $875 million. Subject to regulatory approvals, the two companies plan to close the sale during the first half of 2011.
Roadrunner Transportation Systems acquires Georgia firm
Roadrunner Transportation Systems Inc. (RRTS), a Cudahy-based transportation and logistics services provider, has acquired all of the outstanding stock of Morgan Southern Inc. of Conley, Ga., for approximately $20 million in cash.
Morgan Southern is a privately-held provider of intermodal transportation and related services. With 19 terminals located throughout the United States, Morgan Southern serves the majority of the country’s key intermodal markets. Its customer base consists primarily of direct shippers, intermodal marketing companies, steamship lines and other port and rail related transportation industries.
The acquisition was financed with borrowings under RRTS’ existing credit facility.
Mark DiBlasi, president and chief executive officer of RRTS, said, "The Morgan Southern transaction is an excellent fit with our growth strategy – it provides us with a new service offering within our truckload segment and further expands our geographic profile. RRTS’ sales force will serve as an extension of Morgan Southern’s sales efforts to market its intermodal services to new and existing RRTS customers. With growth in international trade and continued improvements in rail efficiency, we believe favorable trends will continue in the intermodal sector for the foreseeable future."
Morgan Southern will continue to operate in its current capacity under the leadership of Ben Kirkland, its head of operations since 1996.
Kirkland said, "This is a very positive event for Morgan Southern and its customers. RRTS is committed to ensuring maximum customer satisfaction through continuity of Morgan Southern’s personnel and expansion of its service capabilities. We look forward to partnering with RRTS to execute a shared strategy for profitable growth."
