CF Holding acquires MGM Transport
Combined companies’ revenues will top $120 million
Thomas Russell -- Furniture Today, July 3, 2007
HIGH POINT — In a deal uniting two big furniture transportation specialists, CF Holding Co. has acquired MGM Transport Corp. and plans to run the company as a subsidiary, the companies announced Tuesday.
CF Holding’s properties include Lenoir, N.C.-based Caldwell Freight Lines and Conover, N.C.-based Foothills Trucking. Combined, these companies operate 310 tractors and 950 trailers, according to their respective Web sites.
Including MGM, the combined company will have 652 tractors and 1,760 trailers and revenues of more than $120 million, according to a statement.
Officials did not reveal a purchase price.
The companies said the purchase allows CF Holding to tap into warehousing and home delivery opportunities offered by MGM. It also allows both companies to take advantage of each other’s respective technologies.
Company officials weren’t available for further comment today. However, in the statement, MGM President Edward Massood said he is excited about the move.
“MGM’s customers are the big winners in this decision,” he said. “We have a responsibility to our customers not only to remain on the leading edge of technology, but also to be constantly innovative in how we do business. By aligning with CF, not only will MGM’s customers continue to receive all the innovative services we are known for; they will now also experience the benefits of a much larger coverage area.”
Dave Brenner, Chairman and CEO of CF, said, “By adding MGM Transport Corp. with its strength and reputation for innovation and technology, and its dedication to leadership in logistical operations, CF is positioned to become the strongest specialized furniture carrier group in North America. It certainly isn’t just our size that will make this group a powerhouse in the industry. Our collective customers can expect seamless operations, more points of pickup and delivery, more warehousing and distribution footage, as well as a larger coverage map … we really don’t see anything but a win-win.”
The statement said that MGM will continue to operate as an operating company and that its “management, employees and assets will remain intact.”
“We are all still individual operating companies, who will continue to deliver transportation solutions and services for our respective customers,” Massood said. “The only change in that respect will be the seamless integration of extended coverage areas, a larger set of capabilities and services, continuity of IT networks, and the financial stability of our combined resources. We are just making the furniture transportation business better.”
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