Wabash National Announces Intent to Sell Beall Tank Trailers to MAC Trailer

Rhea-AI Summary

Wabash National Corporation (NYSE: WNC) has announced its intention to sell the Beall brand of tank trailers and associated assets to MAC Trailer Enterprises Inc. for resource reallocation aimed at enhancing asset efficiency and focusing on scalable market opportunities. The sale, expected to close on December 31, 2020, saw Beall generate approximately $23 million in sales in 2019. Wabash plans to redirect efforts towards innovation and growth in parts and services, along with cold chain and home delivery markets.

Positive

• The strategic sale of Beall will optimize resources and enhance asset efficiency.
• Focus will shift to markets with scalable growth opportunities, including parts, services, and cold chain.

Negative

• The divestiture of Beall may lead to a reduction in overall market presence in the tank trailer segment.

• Beall asset sale provides opportunity to reallocate resources
  
• Beall tank trailers will continue operations under MAC Trailer Enterprises Inc.

LAFAYETTE, Ind., Dec. 16, 2020 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC) today announced its intent to sell the Beall brand of tank trailers and associated assets to MAC Trailer Enterprises Inc. Beall specializes in aluminum tank trailers for the petroleum and dry bulk markets.

“The sale of Beall Tank Trailers represents another tangible step in our work to optimize asset efficiency and focus our growth efforts on markets with scalable opportunities,” said Mike Pettit, senior vice president and chief financial officer. “We plan to reallocate resources to support continued innovation across our product portfolio, as well as strategic growth in parts and services, cold chain and home delivery markets.”

Wabash National acquired certain assets of the tank and trailer business of Beall Corporation in 2013. The Beall business, based in Portland, Oregon, represented approximately $23 million of sales in 2019 and was reported within the company’s Diversified Products Group.

“We remain committed to maintaining a diverse portfolio of solutions that serve customers from first to final mile,” said Kevin Page, senior vice president, customer value creation. “Our Brenner, Bulk, and Walker tank trailer brands are strong in the chemical, petrochemical, and food, dairy and beverage industries, and we intend to continue delivering breakthrough value to customers in these markets.”

The sale is expected to close December 31, 2020, and Beall will continue operations under ownership of MAC Trailer.

About Wabash National Corporation
As the innovation leader of engineered solutions for the transportation, logistics and distribution industries, Wabash National Corporation (NYSE:WNC) is Changing How the World Reaches You™. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash National designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, bulk tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade and pharmaceutical equipment. Its innovative products are sold under the following brand names: Wabash National^®, Beall^®, Benson^®, Brenner^® Tank, Bulk Tank International, DuraPlate^®, Extract Technology^®, Supreme^®, Transcraft^®, Walker Engineered Products, and Walker Transport. Learn more at www.wabashnational.com.

Safe Harbor Statement
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 about the Company’s proposed sale of certain assets of Wabash National Corporation to MAC Trailer Enterprises Inc. and the timing of the anticipated transaction. Forward-looking statements convey the Company’s current beliefs, expectations or forecasts of future events but are subject to a number of risks, uncertainties and changes in circumstances, which may cause actual results or actions to differ materially from what is expressed or implied by these statements. All statements contained in this press release other than statements of historical fact are forward-looking statements. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, the satisfaction of conditions to closing the transaction and the time and resources required to do so, competitive developments, and conditions in each of the companies’ industries. Readers should review and consider the various disclosures made by the Company in this report and in the Company’s other reports to its stockholders and periodic reports on Forms 10-K and 10-Q and the risk factors discussed in the Company’s filings with the U.S. Securities and Exchange Commission.

Media Contact:
Dana Stelsel
Director, Corporate Communications
(765) 771-5766
dana.stelsel@wabashnational.com

Investor Relations:
Ryan Reed
Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@wabashnational.com

FAQ

What brand is Wabash National selling?

Wabash National is selling the Beall brand of tank trailers to MAC Trailer Enterprises Inc.

When is the Beall tank trailer sale expected to close?

The sale is expected to close on December 31, 2020.

What were Beall's sales figures in 2019?

Beall generated approximately $23 million in sales in 2019.

What will happen to Beall after the sale?

Beall will continue operations under MAC Trailer Enterprises Inc. after the sale.

What are Wabash National's plans after selling Beall?

Wabash plans to reallocate resources to support innovation and growth in parts, services, cold chain, and home delivery markets.