ArcBest to sell FleetNet America to Cox Enterprises

ArcBest has reached an agreement, following a process that began in early 2022, to sell FleetNet America, a provider of fleet maintenance and repair services, to Cox Automotive Mobility Solutions, a division of Cox Enterprises. The sale is effective February 28. Terms of the transaction include a cash payment at closing of $100M, subject to certain tax and other customary adjustments, customary representations and warranties of the seller, FleetNet and Cox Enterprises. On a preliminary basis, ArcBest expects to receive proceeds, net of tax and transaction expenses, of approximately $75M and to record an estimated after-tax gain of approximately $50M on this transaction. In addition, ArcBest announced that its board of directors has increased the total amount available under the company’s common stock repurchase program to $125M. Stephens acted as financial advisor to ArcBest for the transaction. Vinson & Elkins acted as legal advisor to ArcBest. BakerHostetler acted as legal advisor to Cox Automotive.