Adams Resources & Energy, Inc. Completes Acquisition Of Comcar's CTL Transportation Assets

Rhea-AI Summary

Adams Resources & Energy, Inc. announced the acquisition of CTL Transportation, LLC, a subsidiary of Comcar Industries, enhancing Service Transport Company's fleet with approximately 163 tractor trailers and 328 trailers. This acquisition expands operations into Florida, Georgia, Illinois, Missouri, and Ohio, expected to be immediately accretive to earnings. Adams Resources focuses on crude oil marketing, transportation, and storage through its subsidiaries. The transaction aids in scaling operations and enhancing service capabilities.

Positive

• Acquisition of CTL Transportation increases fleet size with 163 trucks and 328 trailers.
• Expansion into Florida, Georgia, Illinois, Missouri, and Ohio broadens operational footprint.
• Transaction expected to be immediately accretive to earnings, boosting profitability.

Negative

• Potential integration challenges with newly acquired assets may affect operational efficiency.

HOUSTON, June 29, 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 closed on its previously announced purchase of substantially all of the assets of CTL Transportation, LLC ("CTL"), a subsidiary of Comcar Industries, Inc. 

The acquisition grows Service Transport's collective fleet size through the addition of approximately 163 tractor trailer trucks and 328 trailers, and expands its footprint of operations into Florida, Georgia, Illinois, Missouri and Ohio.  The transaction is expected to be immediately accretive to earnings.   

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 www.adamsresources.com.

Cautionary Statement Regarding Forward-Looking Statements
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 otherwise.

Contact:  Tracy E. Ohmart
EVP, Chief Financial Officer
tohmart@adamsresources.com
(713) 881-3609

 

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SOURCE Adams Resources & Energy, Inc.

FAQ

What did Adams Resources & Energy, Inc. announce on June 29, 2020?

Adams Resources & Energy, Inc. announced the acquisition of CTL Transportation assets, enhancing its transportation subsidiary, Service Transport Company.

How many trucks and trailers were included in the acquisition by Adams Resources?

The acquisition included approximately 163 tractor trailer trucks and 328 trailers.

What impact is the CTL Transportation acquisition expected to have on Adams Resources?

The transaction is expected to be immediately accretive to earnings, potentially boosting profitability.

Which states will Adams Resources expand its operations into following the acquisition?

Following the acquisition, Adams Resources will expand operations into Florida, Georgia, Illinois, Missouri, and Ohio.