More of defunct trucking company Yellow’s terminals are being sold off to two former less-than-truckload (LTL) competitors seeking to expand their U.S. real estate.
Estes Express Lines and Ramar Land Corporation, an affiliate are R+L Carriers, will acquire more terminals from Yellow’s administrator for a combined $192.5 million.
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The Richmond, Va.-based Estes will pay $142.5 million for seven owned properties and the four leased terminals with a combined 939 doors. Ramar Land Corp. will pay $50 million for one owned terminal, a 304-door, 51-acre Maybrook, N.Y., facility.
Unlike previous sale proceedings that took place via an auction, Yellow’s remaining estate engaged in direct “good faith, arm’s-length” discussions with both Estes and R+L.
“The Debtors believe that the alternative to consummating these transactions as private sales…risks diminishing the significant value that has been achieved under the Asset Purchase Agreements,” the Dec. 10 filing said. “Rather, the Debtors, in consultation with the Committee, have determined in their business judgment that the Asset Purchase Agreements maximize the value of the Subject Properties and should be authorized as private sale transactions.”
One of the largest of Estes’ seven owned acquired terminals is located in Cincinnati, while another smaller service center is in Omaha, Neb. Two of the remaining five are in Indiana, along with terminals in California, Maryland and Georgia.
The four leased properties are in Miami; Norway, Mich.; Dunmore, Pa; and Orange, Calif.
This is the third major sale of Yellow’s terminal assets. The prior two were held as auctions that raised $1.88 billion and $82.9 million through the sale of 130 and 23 of Yellow’s owned and leased terminals, respectively.’
The first auction results were approved last December, with LTL competitor XPO scooping up 28 terminals for $870 million and both Estes and R+L winning big. Estes won out on 24 terminals for $248.7 million, while R+L Carriers got real estate assets in the deal, paying a price of $211.5 million.
In that auction, Saia secured bids for 17 properties totaling $235.7 million, while another LTL rival, Knight-Swift, won the rights to own 13 terminals with $51.3 million price tag.
Later that month, Estes spent another $35.3 million to outbid others for five properties, while Ramar Land Corp. landed three terminals valued at $9 million.