Sale Announced

Discussion in 'Jevic Transportation' started by DoorMatt, Jun 30, 2006.

  1. mothertrucker

    mothertrucker Member

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    HHmmmm doormatt may have a small point. Why even mail out the letters.Doesn"t that cost money?? Why not hand them out at the terminals? I thought we needed to save money all the way around? O well like "Crazy Alice would sayArrivaderchie CS" that is all.
     
  2. imported_deadhead

    imported_deadhead Member

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    i don't know about St. John's but an x-preston driver told me they owned preston for some time before preston closed. does anyone remember how all that went down?
     
  3. Moparman

    Moparman Member

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    What does an investment company know about a trucking company?..Answer.Nothing!It's just a tax shelter for them.Their going to milk it dry and then what's left of it they will right off as a loss!Sad but true, this is the begining of the end for Jevic.Another good company down the pooper!
     
  4. Moparman

    Moparman Member

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    By the way,i'm pretty sure it was sun oil company that sunk ST.J.
     
  5. imported_gabbydad

    imported_gabbydad Member

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    Mopar you're talking s@#$. Go to Sun Capital's website and see the companies they work with. Then you can come back here and talk smack about something else.

    www.suncappart.com

    Jevic is now a privately held entity that is a strong brand. We have new trucks on order and we have new drivers knocking at the door. Some had left and want to return.

    Watch and see.
     
  6. imported_gabbydad

    imported_gabbydad Member

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    Deadhead Yellow owned Preston till 1998. Then they sold it to the 3 execs running it till 1999 when we closed.

    SCS was formed in Oct 2002.

    Some familiar faces but different entities.
     
  7. DOLLARBILL

    DOLLARBILL Member

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    you said the truth it happens all the time.workers all ways get the short end of the stick.an watch the will grease that stick 2.
     
  8. serta

    serta Active Member

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    Sad, but some times its quicker to make a buck by selling off everything, then keeping it running. Even if it is profitable.
     
  9. dot

    dot New Member

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    :duh: it was sun capital partners....not sun oil..preston was owned by Yellow...i see it as a great opportunity.....you should too
     
  10. Dirty White Boy

    Dirty White Boy Member

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    GLOOM AND DOOM-That sounds like CB chatter @ a truckstop. We've had months, no, years of this. Turn down your squelch, start your engines, and get to work. No situation is perfect in life. If we perform, we will survive, whether we stay with SCP, or are sold later, it will be up to us (Mngmt. AND Drivers).

    Good quote, Gabbydad: Futures so bright I have to wear shades!:cool:
     
  11. DoorMatt

    DoorMatt Member

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    Do you have a CLUE how private equity (aka venture capital) works? I doubt it. Here it is in a nutshell.

    A group of people/companies with money is put together. These are investors. They may be high net worth individuals, they may be pension plans or they may be companies with investment money. We'll call that the "S'Pot of Money". The VC firm collects all these investors into this pot, which is called a "Fund". They then go out and find things to invest this money in. Each VC firm will have different criteria. Each will invest only in some industries. Some VC firms don't do transportation. Some like only technology. Some only invest in start ups, some are mezzanine investors, some like managment buyouts, but each one has their likes and dislikes.

    Once a VC invests in a company, their ONLY goal is to turn a profit. There are three ways to do this. 1. Sell off the assets if the assets are worth more than they paid. In Jevic's case, probably not much chance of this. 2. Make the company more profitable and sell it off to another private company or arrange for it to become employee owner or bought by the management in place. 3. Take the company public.

    S'pots of money are not the least bit interested in losing their investment or only making a pittance. They are invested in the long run usually. And the investors have people they have to answer to. If the funds under management include pensions and retirement plans, they have oversight committees and regulators to answer to.

    If you've read between the lines, Sun Capital isn't the lead investor here, a subsidiary of Sun Capital is. I've been trying to discover who that is, because that will make a difference. Subsidiaries exist for different reasons.

    What that means is that a consortium of investors could have been formed JUST to purchase Jevic. That would be different than being in a fund with Sun Capital.

    Time will tell.
     
  12. Friend of the frog

    Friend of the frog Member

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    The one thing that is consistent with all the above scenarios, is that at this point in time Jevic is still not a stable company.

    Chances are that within a year or so, there will be another group of Jevic owners, whether employee based or sold once again to a larger company.

    In a worst case scenario, the assets are liquidated and Jevic is disolved/

    I do not remember the buying pricing, but it seemed like a bargain to me. SCS did not do Jevic any favors by posting that letter from the investors calling for Jevic to be :shit: down. It kind of killed any leverage they may have had.

    The bottom line is "Who knows ??"

    I would try and be as positive as possible, but also keep my eyes open. Nobody wants the carpet pulled out from under them.
     
  13. imported_gabbydad

    imported_gabbydad Member

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    SCS had no choice with the press release.

    Starboard did that after SCS refused to buckle.

    As fo Jevic's stability. Time will tell. Here's what I know.

    Since July of 1999, we were held by owners who tried to make us something we weren't. Their intention was to blend us in with Saia.

    Now for the 1st time in 7 years, we can concentrate on our given core market, that when allowed to do so, we dominated.

    We're the largest ltl carrier with true protect from freeze. We're the largest carrier with qualcomm in very truck.

    Our claims ratios has run at .5% for 25 years.

    That's a half of a % point. Where does the rest of the industry stand? 1.5% to 2%.

    We don't break freight.

    People are excited. Both employees and our customer base.

    We're psyched! Thank you to all the well wishers!:bgroovy:
     
  14. BuzzBeez

    BuzzBeez Extraboard Crazy

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    Thanks for putting the facts out there gabbydad. One question though, are we really busy now or just short drivers? Seems very busy @ j2 for mid July.
     
  15. Friend of the frog

    Friend of the frog Member

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    Truth be told I am happy for Jevic, but having seen the carpet pulled out from other carriers over the years I have grown very skeptical of owners and corporations.

    I remeber when APA shut down. They were just closing a couple of terminals and then one day they were gone. I saw CF spend millions the last couple of years. I saw USF announce twenty something million dollars in capital only to pull the plug 6 months later.

    Then just this past year on the other side. I watched as the teamsters danced through USF Dugan announcing union membership successes and BAM three months later they were gone.

    I hope this is a good thing or at least what it seems to be. Its just hard to see through rose colored glasses after having them smashed in my face so many times.

    Good luck
     
  16. BuzzBeez

    BuzzBeez Extraboard Crazy

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    Time will tell

    Who knows, the last chapter in this book may or may not have been written already. I'm sure in all the above cases, their fate was sealed long before the final outcome. All we can do is give the new owner's their moneys worth and show them how it's done. They've just bet 40 million on us, now it's our turn.
     
  17. imported_gabbydad

    imported_gabbydad Member

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    Yeah Buzz we're busy, but also hurting for drivers.

    As soon as the news came out though, bunch of drivers inquired about returning.

    As long as we walk the walk now, it'll all fall into place.

    40 new trucks on their way and no more speculation: This'll attract new drivers.

    Then we have execute. Plain and simple. Defend our current business, secure new business and perform.

    W/O customers, no one survives. Not any carrier listed on this board. We can talk about union or non-union, management woes, driver woes, etc etc etc.

    If we don't serve the customer, they'll go away. Customers have options. Just like when you get a bad meal at Applebee's. Next time you just go to Chili's.

    Or just like when you spend a little more for brand name ketchup vs the store brand. Customers will pay for value. Hard to believe, but it's been tested. We all play a role in that.
     
  18. Brother Trucker

    Brother Trucker Member

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    Oh wise one,

    You have hit the proverbial nail on the head. If we as members of the transportation industry, no matter if dock worker, driver, dispatcher, sales or management, remember that our customers are really the ones who sign our paychecks by their continuing to use our services, and conduct ourselves accordingly,not only will our companies survive, but will prosper.

    I hope you guys at Jevic not only pull out of the spiral the company has been in, but just to show the doubters, nay sayers, and those who thought they could turn Jevic into a Saia clone, prosper. It changed when Yellow tried to change you guys and discovered that Jevic wasn't built to give service the same way as a hub and spoke system. Good hunting.
     
  19. DoorMatt

    DoorMatt Member

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    Well, what about keeping the old drivers? The ones who have been there for 15, 18 years and are driving pieces of junk that should have been taken off the road two years ago?

    It's all well and good to get new equiptment but the drivers who have stuck around need to get it first. Even just going back and doing the proper maintence. I needed a new shock for six months. They replace ONE. Because of that the new shock is leaking. Both should have been done, but they won't.

    We're getting more and more retreads on the truck. We're getting less and less service.

    And BFD on the Qualcomm. Local J1 drivers don't have it. They have Nextel phones. That mostly suck. And when they do finally work, they change the programming without updating the drivers and those in the field have to figure it out again. And the Qualcomm version they do have is so old that it's almost obsolete. If they're going to brag on it, it needs to be current. It was cutting edge when it first was installed but it's not any more.
     
  20. Friend of the frog

    Friend of the frog Member

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    Gabby- I hate to be a sour puss, but CF spent over $20 million about 6 months before closing. USF had ordered more than $23 million in new equipment in Feb of 04 and were gone in May of 04. The trucks still came.

    Spending money does not insure your future. Trust me I was in your shoes. Every situation is different and I understand that. You need to make this work because it means the world to your.

    The sad part is that the millioniaire who acquired you guys don't have the same desire that you have.
     

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