ArcBest has sold its fleet maintenance and repair services business for $100 million to Cox Automotive Mobility Solutions, the carrier announced.
The sale of FleetNet America closed Tuesday, following a yearlong process that began in early 2022, ArcBest said.
ArcBest CEO Judy McReynolds said the carrier gained expertise in equipment maintenance and repair through its onwership of FleetNet but FleetNet’s services are no longer core to ArcBest’s growth strategy as a logistics company.
FleetNet operates a network of more than 60,000 independent service providers throughout the U.S., Puerto Rico, Canada and Mexico, Cox Automotive said in a statement.
"We are invested in making operating a fleet more efficient, solving our customers' problems on the road or in the garage,” Alex Fraser, AVP of fleet operations for Cox Automotive, said in a press release.
Alongside its sale announcement, ArcBest said it raised the total amount available for a stock repurchase to $125 million.
Canada-based TFI International disclosed in its Q4 results on Feb. 6 it had purchased just over 1 million shares of ArcBest, which has led to speculation TFI may be positioning itself to acquire the company. Expansion through acquisition is a longtime strategy at TFI, which has purchased 114 businesses across the U.S. and Canada since 2008, according to its website.
ArcBest declined to comment on the speculation for this story, instead pointing Transport Dive to an earlier comment from McReynolds on the matter.
“I think the primary piece of knowledge here is that they’ve made the investment,” McReynolds told The Wall Street Journal. “We’re very focused on running our business. We have a lot in front of us. We like our strategy, and our customers are very favorably responding to it.”
Editor’s note: This story has been updated to include additional comments from ArcBest.