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Sale Announced

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DoorMatt

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From http://today.reuters.com/investing/...IDST_0_TRANSPORT-SCSTRANSPORTATION-URGENT.XML

SCS Transportation to take charge on unit sale; CEO to step down
Fri Jun 30, 2006 4:42pm ET12

June 30 (Reuters) - SCS Transportation Inc. (SCST.O: Quote, Profile, Research) on Friday said it expects to take a non-cash charge of $47 million, or $3.15 per share, in the second quarter related to the sale of its Jevic Transportation Inc. unit.

The company also said Bert Trucksess will continue to serve as chief executive officer and chairman through a transition period expected to be completed by calendar year-end, after which he will become non-executive chairman.

SCS appointed Rick O'Dell, president of its Saia Motor Freight Line Inc. unit, as its president, effective immediately, and he will succeed Trucksess as CEO following the transition period. (Reporting by Gopakumar Warrier in Bangalore)

Another article http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20060630005485&newsLang=en

Sun Capital Partners
http://www.suncappart.com
 
:bgroovy:

Well, we can put those rumors to bed.

It's a shame that our industry has turned into a bunch of people who thrive on rumors.

Froms Sales, to Drivers to Mgmnt, everyone loves to throw the crap around.

Here's why the rumors were so rampant about Jevic:

We have good freight. We've always had good freight. When I wasn't with Jevic, I wanted Jevic freight.

We're a solid company with solid people. Some of the finest drivers I've met work here.

We have a solid management staff who cares and takes ownership in our success.

Jevic is now private. We are instantly profitable from this deal. And I can tell you first hand that this has been overwhelmingly well received by our employees and customer base.

As for me, I am going back to focusing on making Jevic the Best of the Best in any way I can.

Some of you will go on to the next rumor and that's a shame.
 
Sorry to say this but rumors are part of life. They are not unique to trucking nor are they unique to sales reps and truck drivers.

I have seen many companies collapse because of such rumors. Once the word of a pending change of ownership the speculation begins.

Once the arrangements are finalized the rumors are put to bed.

One thing people should remember and this Jevic situation bears fruit to the theory that where there is smoke there usually is fire.

Same as Watkins and FedExt a few short weeks ago.

Some come out of left feild like the Yelllow purchases or UPS, but most get leaked and the rest is history.

Good luck to the Jevic employees and Gabby, don't be so down on the industry, be down on society. There are creeps in all walks of life.

My steak is burning.
 
SCS to sell Jevic, move headquarters to Georgia
SCS Transportation Inc. has found a buyer for its troubled Jevic Transportation Inc. subsidiary in a deal that will move the trucking holding company's headquarters to Georgia from Kansas City.

An affiliate of Sun Capital Partners Inc., a private investment firm, has acquired Jevic for $40 million. Jevic, based in Delanco, N.J., is a hybrid truckload and less-than-truckload carrier that has struggled and negatively affected SCS's earnings over the past several quarters.
Click to expand...
complete story link
 
I have been thinking about this long and hard. This may be the best thing for Jevic as well as SAIA and SCS. However, how does it translate into the long term health of this company.

Jevic was one of the best companies out there. However, since the Yellow buy out they have struggled. Not throught the fault of their workforce, but because of the vision of Yellow and SCS.

There was a time when Jevic only handled shipments from 2000# and up. They handled basically dock to dock without any retail freight at all. Now they have become just another LTL carrier.

Does the new ownership group look to drop the freight that is unprofitable for them. Do they make thier bred and butter accounts stop giving them the single skid for here and there ??

There are a lot questions out there that will be answered in the not too distant future.

There is also the fact that Jevic has been unstable for the better part of a decade now. Think about it 4 different ownerships in less than 10 years does not exactly breed stability.

You also still have the New Century factor. As long as Jevic exists in some form New Century will target that business and that work force. You are not in a enviable position and I wish you guys the best of luck.
 
Along with the challenges you list, we have the core of an excellent best in class performing carrier. Excellent leadership, devoted employees, a service product still among the best in the industry.

Actually, alot of the challenges listed, translate to many freight carriers.

NC is not in such great shape for example. But one would never know since they are private.

I've got freinds at other companies who tell me of drastic changes in thier resepctive work environments.

As a company, we're excited and motivated and that counts for alot.

Stay tuned...
 
"The Sale"

FINALLY! Here's hoping for the "Best of the Best" to BE...the BEST OF THE BEST AGAIN!

I don't understand all the sale terms, such as 'taking a charge of $47 million', and what that means to our real worth, since Yellow gave $194 million for us 7 years ago, but right now, any news is good news to me, as long as we keep working.

SCS could have shut the doors, sold off the equipment, and waved good-bye to us. :loser:

Now, maybe I can begin to think about contemplating that new car...:eek:
 
Dirty White Boy said:
I don't understand all the sale terms, such as 'taking a charge of $47 million', and what that means to our real worth, since Yellow gave $194 million for us 7 years ago,
Click to expand...

I heard Harry got 220M for Jevic... hmmm..

Ok, the terms are basically that they get 40 million dollars cash monies and they get a 47M charge OFF.

A charge off is the removal of an account from a creditor's books as an asset after it has been delinquent for a period of time, usually 180 days. When an account is charged off, the credit issuer absorbs the outstanding balance as a loss.

Basically it's permission to write off debt. It's mostly an accounting ledger entry. Like you owe me 500 bucks from that last big game we bet on. Now, I know dang well that you're NEVER going to pay up b/c you're a welsher. So instead of listing that 500 dollars as an ASSET (since it's money I am owed), I put it on my taxes as a "loss" because I never got paid. And I get to ding your credit report big time. :D
 
100 million?

When i add all the numbers up: purchase,tax benefits,transaction fees, write offs it comes to 100 million. Wish someone with a good knowledge of accounting practices would clarify all of these numbers for me. When they start talking that tax stuff i get lost. Just don't miss the conference call Mon. July 03 at 0830 eastern time on SCST web site. May be more info then.
 
Its about time.Get rid of the SCS mgt.They
dont know how to run our type of operation.
Hub and spoke is their thing.Thankfully,its not
Harry buying us.I don't want to go back to
working that crazy
 
Look at it this way guy's.We all have been here for the better part of 25yrs, and the reason is, that we all belive in ourselves and our company. Did we all jump ship when the "KING of ALL SLAVES" opened his "Magic Doors" HELL NO for the better part we all stuck to our guns,and stayed, Why?? Because we all belive in this company.Do we belive in SUN CAPTIAL i say yes. the are not here to sell the company off , hell SCST could of done that. NO they belive in the people. (besides eqiupment and buildings) they bought this place beliving the we ALL can make things right.We are a diamond in the ruff who just needs a little polishing, to be the bright star we once used to be I remember when i got hired you really had to be a DAM GOOD driver to get hired i watched them shred hundred of applications from people who did not make the cut:smilie_132: do we get some bad empolyees? sometimes. But for the rest of us we ALL make this place somewhere proud to work for and at! I for one belive we are going to see a BIG chane in workers attitudes as this will be a GOOD place to once again call JEVIC home :bgroovy:

:tribehasspoken: :d6625240:
 
White Nagle Mazza & Associates took St J public.

Private Equity investors at the mezzanine level rarely "ransack" investments. It's counterproductive. The theory behind private equity is to buy things and then either sell them for MORE than you paid or take them public and make a crapper full of money doing so. The only time a company would be sold off for it's assets would be in the situation where the management was so reprehensible that it was beyond salvation. St. J was also a union company with contracts that were crippling.

On another note, anyone get the "Dear Colleague" Letter?

What a piece of grammatically incorrect crap. The CEO should be shot for approving it and his secretary fired.

No decent business letter starts with "I wanted". Hey, Jacko! FYI, this isn't about what YOU wanted!

And NEVER address a letter to employees "Dear Jevic Colleague". If you don't have the smarts to do a mail merge with my NAME on it, don't write me at all.
 
Door,
You need to meet the man. He's 13 year + Jevic veteran who is about as sincere, honest, and accessible as any SR mgr you' ll ever meet.

He stayed on the J1 dock till he spoke with all the drivers and dock people he could.

He does that at least quarterly to make sure he knows what's going on aand what our concerns are.

Writing style, aside hopefully you'll get a chance to talk with him if ever in J1 or while her travels.
 
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