U.S. Xpress Buys Additional Equity in Arnold

U.S. Xpress Enterprises completed the acquisition of additional equity in both Arnold Transportation Services Inc. and Total Transportation of Mississippi and affiliated companies. The transaction increased U.S. Xpress ownership to 80% from 49% in each business.

The company paid a total of approximately $7.9 million in cash. For 2005, Arnold and Total contributed $2.8 million of equity in earnings for U.S. Xpress, with combined revenue of $317.0 million and combined net income of about $5.7 million. U.S. Xpress will consolidate both companies on a consolidated basis, including their existing debt.

The excerpt also notes that if the transactions had occurred as of Dec. 31, 2005, total debt would have increased from $177.2 million to approximately $308 million, with fixed-charge coverage and senior-leverage ratios expected to remain within limits of U.S. Xpress’s primary credit agreement.