HOUSTON, May 18, 2020 /PRNewswire/ -- Adams Resources
& Energy, Inc. (NYSE AMERICAN: AE) ("Adams" or the "Company") today announced that
Service Transport Company ("Service Transport"), Adams' transportation subsidiary, has executed
a definitive agreement with Comcar Industries, Inc. ("Comcar") to
acquire substantially all of the assets of Comcar's subsidiary, CTL
Transportation, LLC ("CTL"). CTL is a liquid bulk chemical
carrier that owns approximately 160 tractor trailer trucks and 320
trailers with primary operations in Alabama, Florida, Georgia, Louisiana, Missouri, Ohio and Texas. Service Transport's anticipated
purchase of CTL's assets is part of Comcar's Chapter 11 bankruptcy
process as announced on May 17,
"We are pleased to enter into this strategic transaction given
its key benefits on multiple fronts," said Kevin J. Roycraft, Adams' Chief Executive Officer. "The
acquisition will allow us to grow the size of Service Transport's
collective fleet of both tractors and trailers by more than 50
percent, as well as expand our operating footprint into four new
important markets. Finally, the transaction offers a
compelling valuation for our shareholders and will be immediately
accretive to earnings."
"We look forward to having CTL's assets folded into Service
Transport and welcoming their experienced drivers and related
operations personnel into the Adams' employee family," said Wade Harrison, President of Service Transport.
"Importantly, Service Transport and CTL utilize similar
software and certain other key operating and financial systems,
which should result in a fairly seamless integration. Bottom line,
we believe the resulting much larger industry-leading vehicle fleet
and operating footprint, along with an expanded pool of
best-in-class drivers and support staff, places Service Transport
in a strong position for continued long-term success."
Comcar has filed a motion with the Bankruptcy Court for the
District of Delaware seeking
approval of the asset purchase agreement with Service Transport.
The transaction is subject to customary regulatory approval,
including through the bankruptcy court, and closing conditions.
Adams expects to close the
transaction as soon as practicable after such regulatory approvals
and closing conditions have been satisfied, which is currently
anticipated to occur in the third quarter or earlier.
Adams Resources & Energy, Inc. is primarily engaged
in the business of crude oil marketing, transportation and storage,
tank truck transportation of liquid chemicals and dry bulk and ISO
tank container storage and transportation through its two
subsidiaries, GulfMark Energy, Inc. and Service Transport Company,
respectively. For more information, visit
Cautionary Statement Regarding Forward-Looking
This news release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements relate to future events and anticipated results of
operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"intend," "plan," "project," "estimate," "continue," "potential,"
"should," "could," "may," "will," "objective," "guidance,"
"outlook," "effort," "expect," "believe," "predict," "budget,"
"projection," "goal," "forecast," "target" or similar words.
Statements may be forward looking even in the absence of these
particular words. Where, in any forward-looking statement, the
Company expresses an expectation or belief as to future results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. Forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, including, but not limited to:
Adams' ability to efficiently
integrate the CTL assets and to obtain the anticipated benefits
therefrom. However, there can be no assurance that such
expectation or belief will result or be achieved. Unless legally
required, Adams undertakes no
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or
Contact: Tracy E.
EVP, Chief Financial Officer
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SOURCE Adams Resources & Energy, Inc.