ArcBest to Acquire MoLo Solutions for $235M

TL;DR

ArcBest buying MoLo Solutions for $235M to boost expedited freight biz.

AI Summary

ArcBest Corporation announced on March 8, 2024, that it has entered into a definitive agreement to acquire 4240 Acquisition Corp., the parent company of MoLo Solutions, LLC, for approximately $235 million in cash. This acquisition is expected to significantly enhance ArcBest's less-than-truckload (LTL) network and expand its premium, time-definite, and expedited freight services. The transaction is anticipated to close in the second quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition allows ArcBest to expand its service offerings in expedited freight, a high-growth area, potentially leading to increased revenue and market share.

Risk Assessment

Risk Level: medium — The acquisition involves a significant cash outlay and integration risks, and its success depends on achieving projected synergies and market growth.

Key Numbers

• $235 million — Acquisition Price (Cash consideration for MoLo Solutions)

Key Players & Entities

• ArcBest Corporation (company) — Acquiring company
• 4240 Acquisition Corp. (company) — Target company's parent
• MoLo Solutions, LLC (company) — Acquired company
• $235 million (dollar_amount) — Acquisition price
• March 8, 2024 (date) — Announcement date
• second quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock $0.01 Par Value ARCB Nasdaq Indicate by

Filing Documents

• arcb-20240308x8k.htm (8-K) — 89KB
• 0001558370-24-002774.txt ( ) — 208KB
• arcb-20240308.xsd (EX-101.SCH) — 3KB
• arcb-20240308_lab.xml (EX-101.LAB) — 15KB
• arcb-20240308_pre.xml (EX-101.PRE) — 10KB
• arcb-20240308x8k_htm.xml (XML) — 4KB

01 – REGULATION FD DISCLOSURE

ITEM 7.01 – REGULATION FD DISCLOSURE ArcBest (Nasdaq: ARCB) is providing an update on the most recent information related to its first quarter 2024 financial results and business trends. Asset-Based Operating Segment Year-over-Year Monthly Business Trends: January 2024 (1) February 2024 (2) Billed Revenue/Day (3) -7.3 % -3 % Total Tons/Day -18.0 % -14 % Total Shipments/Day -9.4 % -4 % Total Billed Revenue/CWT +12.9 % +13 % Total Billed Revenue/Shipment +2.3 % +2 % Total Weight/Shipment -9.5 % -10 % 1) January 2024 metrics represent actual results. There were 22.0 workdays in January 2024 and 21.0 workdays in January 2023. 2) February 2024 metrics have not been finalized and are preliminary. There were 21.0 workdays in February 2024 and 20.0 workdays in February 2023. 3) Revenue for undelivered freight is deferred for financial statement purposes in accordance with the Asset-Based segment revenue recognition policy. Billed revenue per day has not been adjusted for the portion of revenue deferred for financial statement purposes. Despite the softer freight environment, core shipments and tonnage for February 2024 increased on a year-over-year basis by approximately 13% and 8%, respectively, an improvement compared to January 2024's year-over-year results. Total shipments and tonnage declined, primarily due to strategic price adjustments on transactional LTL business, which reduced shipments but improved service and operating results. In addition, smaller customer orders and changes in freight profile and business mix compared to last year have resulted in a lower average weight per shipment. Excluding periods affected by the pandemic, the average sequential change in the segment's operating ratio from the fourth quarter to the first quarter over the past ten years has been an increase of approximately 400 basis points, with larger increases occurring during declining economic environments. Pr

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Se ARCBEST CORPORATION (Registrant) Date: March 8, 2024 /s/ J. Matthew Beasley J. Matthew Beasley Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR