Arkansas Best Corporation announced today it has completed the sale of Clipper Exxpress, its intermodal transportation subsidiary, for approximately US$21 million in cash to Bluenose Holdings Inc., a division of Wheels Group, of Mississauga, Ontario Canada.
Arkansas Best estimates that its net cash proceeds from the sale, after transaction costs and income taxes, will be approximately US$19 million. The company estimates that the sale will result in an after-tax gain of between $0.11 and $0.12 per share which will be recognized in the second quarter of 2006. The final purchase price is subject to adjustments based on the closing balance sheet as of June 14, 2006.
Clipper's results of operations and the gain on the sale will be reported as discontinued operations in Arkansas Best's future financial filings.
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