Avalon Holdings Corporation Announces Agreement to Sell Its Transportation Operations
26 Juni 2004 - 12:05AM
PR Newswire (US)
Avalon Holdings Corporation Announces Agreement to Sell Its
Transportation Operations WARREN, Ohio, June 25
/PRNewswire-FirstCall/ -- Ronald E. Klingle, Chairman of the Board
of Avalon Holdings Corporation (AMEX:AWX) ("Avalon"), announced
today that Avalon has reached an agreement in principle to sell its
transportation operations. Avalon anticipates selling all of the
common stock of DartAmericA, Inc. ("DartAmericA") to BMC
International, Inc. ("BMC") for a purchase price of approximately
$4.4 million. As a result of the purchase of DartAmericA, BMC shall
also be acquiring DartAmericA's wholly owned subsidiaries including
Dart Trucking Company, Inc. ("Dart") and Dart Services, Inc. and
shall be assuming Dart's operating lease obligations of
approximately $5 million. Prior to the sale, DartAmericA shall
transfer to Avalon its Canfield terminal and all accounts
receivable outstanding for more than 60 days as of the closing
date. The final sale price will be adjusted to reflect changes in
certain of DartAmericA's balance sheet items from March 31, 2004 to
June 30, 2004. The understanding reached with BMC is subject to
finalization of acquisition documentation and the transaction will
be contingent upon BMC completing its financing arrangements and
obtaining required insurance coverages. Although there can be no
assurance, it is anticipated that the transaction will close early
in the third quarter. As a result of the sale, Avalon is expected
to incur a charge in the second quarter of 2004 estimated to be
between $2.5 and $3 million. Mr. Klingle stated, "As we have
previously disclosed, we have been evaluating the business and
prospects of the transportation operations during the past several
months because we have been unable to profitably operate
DartAmericA over the last few years. In the second quarter of 2004,
we discontinued certain operations in New England. While initially
expressing interest in our remaining New England operations, BMC
offered to acquire our entire transportation business. As a
preeminent local transportation company, BMC will provide for the
continuation of DartAmericA as a major national transportation
company. We intend to focus our efforts toward maximizing
shareholder value through our remaining businesses, including
American Waste Management Services, Inc. and American Landfill
Management, Inc. and we are excited about the prospects of our golf
and related operations." Avalon Holdings Corporation provides
transportation services and waste management services to
industrial, commercial, municipal and governmental customers.
Avalon Holdings Corporation also owns the Avalon Golf and Country
Club, which operates two golf courses and related facilities.
DATASOURCE: Avalon Holdings Corporation CONTACT: Mr. Timothy C.
Coxson, Chief Financial Officer of Avalon Holdings Corporation,
+1-330-856-8800
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