Arkansas Best to Sell Clipper Unit for $20 Million

Arkansas Best Corp. of Fort Smith said Tuesday that it will sell its Clipper Exxpress intermodal unit for about $20 million.

The trucking company announced the sale Tuesday at the Bear Stearns Global Transportation Conference. A recording of Arkansas Best's presentation is available here at the bottom of the page.

David Humphrey, director of Arkansas Best investor relations, said Wednesday that the agreement to sell the unit to Bluenose Holdings Inc. is still subject to terms and financing arrangements. But the deal is expected to close in the third quarter. The final price will be based on balance sheet adjustments as of the closing date of the final agreement, he said.

Bluenose is division of Wheels Group, of Mississauga, Ontario. Wheels Group is in a similar business as Clipper.

Humphrey said Arkansas Best has been exploring options for Clipper for a while. The division presents less than 10 percent of Arkansas Best's total revenue.

Shares of Arkansas Best (Nasdaq: ABFS) were trading at $45.40 on Wednesday after closing at $45.23 on Tuesday.