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Friday, January 27, 2023

Bassett (NASDAQ: BSET) Announces Sale of Zenith Freight Lines

Bassett Furniture Industries, Incorporated (NASDAQ: BSET) revealed that it has decided to sell Zenith Freight Lines, LLC to J.B. Hunt Transport, Inc. J.B. Hunt Transport is the fully-owned operating unit of J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT). As per the agreement, J.B. Hunt Transport will buy the assets of, a fully-owned subsidiary of Bassett, for around $87 million.

Bassett Furniture Industries believed that the sale of Zenith is an interesting new chapter in the company’s desire to provide the best level of service to its clients. Aside from the chaos caused by the epidemic, it is expected that traditional specialized furniture transportation will be consolidated.

On the other hand, J.B. Hunt believed that this investment improves J.B. Hunt’s furniture delivery capabilities by growing its nationwide, end-to-end supply chain solution for its customers. Moreover, it is looking ahead to building a long-term relationship with Bassett which is a manufacturer and retailer of high-quality home furnishings and a leader in the industry.

Furthermore, the company has also confirmed that J.B. Hunt and Bassett will enter into a long-term master services agreement when the transaction closes, in which J.B. Hunt will keep offering the great service Zenith has provided for Bassett for nearly 50 years. Additionally, Zenith reported revenue of $87 million in the fiscal year ending November 2021, with Bassett showing one-third of its business. The deal will be financed using J.B. Hunt’s existing cash balance and is likely to end by February 28, 2022, conditional to customary closing conditions.

Moreover, J.B. Hunt’s industry-leading Final Mile Services sector, which operates one of the largest nationwide commingled cross-dock operations, will benefit from the transaction. Final Mile can serve 100% of the continental United States thanks to its 116 locations and over 3.5 million square feet of warehouse and facility space.

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