NASHVILLE, Tenn. and FORT DODGE, Iowa, Oct. 29 /PRNewswire-FirstCall/ -- Western Express, Inc. and Smithway Motor Xpress Corp. , today announced the successful completion of the previously announced merger agreement for Western to acquire Smithway.
The acquisition builds upon Western's established dry van operation by combining the dry van operations of both companies. Additionally, Smithway's flatbed operation provides Western the market presence and reputation to make the combined flatbed operation a force in the industry. On a combined basis, the companies operate approximately 1,550 tractors in dry van operations and 1,350 tractors in flatbed operations. Smithway's experienced senior management team and employees continue to play integral roles in delivering the companies' combined services to the truckload market.
Wayne Wise, Chairman, President, and Chief Executive Officer of Western, said, "Western is very excited about the addition of Smithway's operations to our existing business. Western has a history of growing through strategic acquisitions, and the acquisition of Smithway is the next chapter in Western's growth story. The combination of the two companies places us in the top 15 truckload carriers measured by revenue, creating more opportunity for our combined customer, employee, and driver bases."
"The addition of Smithway's fleet and truckload transportation services brings tremendous value to Western, creating an even stronger company in the truckload market," said G. Larry Owens, President and Chief Executive Officer of Smithway.
Shareholders of Smithway will receive a letter of transmittal from the paying agent, Computershare Trust Company, N.A., pursuant to which they may submit their shares for payment of the merger consideration.
Morgan Keegan & Company, Inc. served as financial advisor, and Faegre & Benson LLP served as legal advisor to Smithway. Morpheus Capital Advisors LLC served as financial advisor, and Scudder Law Firm, P.C., L.L.O. served as legal advisor to Western. JPMorgan Chase Bank, N.A. and Key Principal Partners provided financing for the acquisition.
About Smithway
Smithway is a truckload carrier that hauls diversified freight nationwide, concentrating primarily on the flatbed segment of the truckload market. As a result of the merger, Smithway's shares will cease trading on NASDAQ at the conclusion of market trading hours today and will no longer be registered under the Securities Exchange Act of 1934.
About Western
Western is a rapidly growing truckload carrier with a history of strategic acquisitions.
