J B Hunt Transport Services Inc (NASDAQ:JBHT) has agreed to acquire the assets of Zenith Freight Lines LLC, a wholly-owned subsidiary of Bassett Furniture Industries Inc (NASDAQ:BSET), for about $87 million.
- Based in Conover, NC, and founded by Jack and Debbie Hawn, Zenith provides specialized LTL transportation services for furniture manufacturers and retailers in the continental U.S.
- Zenith moves products from manufacturing points or import locations using employee drivers, late-model equipment, and approximately one-million square feet of warehouse space to facilitate over one-quarter of a million moves annually.
- Following the acquisition, both founders will transition to key roles with J B Hunt to ensure integration with minimal impact on day-to-day service.
- The acquisition will expand J B Hunt's Final Mile Services segment.
- On closing the deal, the parties will enter into a long-term master services agreement to continue to provide Zenith's service for Bassett.
- The transaction is expected to close by February 28, 2022.
- J B Hunt intends to fund the deal with existing cash balance. It held $355.5 million in cash and equivalents as of December 31, 2021.
- Bassett expects the transaction to net in the neighborhood of $65 million after taxes.
- Price Action: JBHT shares traded higher by 1.01% at $193.85, and BSET higher by 33.9% to $18.67 on the last check Monday.
