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Coyote Logistics Buys Chattanooga-based Access America

by Chloe Morrison, Nooga.com

Third-party logistics company Coyote Logistics—which arranges transport via truck and train—is acquiring Chattanooga-based competitor Access America Transport.

"I've felt a wide range of emotions, but ultimately, I know this is the best place for our company long term," Access America CEO Ted Alling said.

Alling and CFO Barry Large founded Access America in 2002. Miller Welborn and Allan Davis soon joined the company, according to the Access America website.

Over the next 12 years, company leaders added offices in Alabama and Minnesota.

By 2011, the company's sales had doubled to $190 million, and that growth meant 100 new jobs in offices in Alabama, Georgia, Minnesota, Ohio and Tennessee.

Alling said that the sell doesn't mean anyone will lose jobs.

"The combined company has very aggressive growth plans, so layoffs are the last thing on their mind," he said.

Access America leaders got frequent offers, but there was something about Coyote that made Alling, Davis and Large think Coyote was the right fit.

They each admire Coyote CEO Jeff Silver, who Alling said values people the same way Access America leaders do.

"The first time I walked into his office, I got chill bumps," he said. "I looked around, and it was like, 'These are our people.'"

And Alling said that he's seeing consolidation within the industry and that the two companies have complementary assets.

"Together, it's something special," he also said.

Coyote has better technology and gets good prices for train shipping, he said.

Access America does more "less-than-truckload shipping" and more flatbed shipping.

And the move means Alling, Davis and Large—who are also partners in Lamp Post Group, which is an incubator for startup companies—will have more money to invest into that business.

"For the community, it's going to be very good," Alling said. "We're putting a lot more money into Lamp Post, and we're going to start a lot more companies."

Leaders of Coyote said in a news release that the combined company will be one of the largest third-party logistics service providers in North America. That means revenues of more than $2 billion and 17 North American locations, with about 40,000 contracted carriers and about 1,750 employees.

"We are incredibly excited to welcome the Access America team to the pack," Silver said in a prepared statement. "We are confident that our shippers and carriers will see the benefit of our newly expanded and dedicated customer service team. This merger reinforces our relentless commitment to shippers and carriers across North America. We now have more resources and better capacity to serve them."

Leaders said that the transaction is consistent with strategies to build "a premier supply chain offering that provides services for all transportation needs. Shippers and carriers will benefit from an expanded network, enhanced multimodal transportation capabilities and improved less-than-truckload services," according to the news release.

Officials didn't disclose the terms of the transaction.Coyote Logistics Buys Chattanooga-based Access America

Tuesday, March 18 2014, 12:01 PM EDT

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Last Update on October 31, 2014 07:28 GMT

WORLD-FINANCIAL MARKETS

SEOUL, South Korea (AP) -- Japan's Nikkei 225 stock average surged 5 percent and the yen slid against the dollar after the Bank of Japan unexpectedly announced new stimulus to boost a flagging economic recovery.

Other Asian stock markets were also higher after the Japanese central bank's announcement Friday. The dollar rose 1.2 percent to 110.64 yen.

The bank said it would increase its asset purchases by between 10 trillion yen and 20 trillion yen ($90.7 billion to $181.3 billion) to about 80 trillion yen ($725 billion) annually.

The Nikkei was up 4.6 percent at 16,380.11 after shedding some of its initial gains. Hong Kong's Hang Seng rose 1.2 percent and Seoul's Kospi was up 0.1 percent.

ECONOMY-THE DAY AHEAD

WASHINGTON (AP) -- Today. the Commerce Department will release its September report on consumer spending, which accounts for 70 percent of economic activity in the U.S.

Also, the University of Michigan will issue its monthly index of consumer sentiment for October. In September, the index reached its highest level since July 2013, led by greater optimism that the economy will grow and incomes will rise.

The Labor Department will also release the third-quarter employment cost index.

Before the market opens, Exxon Mobil will report its quarterly financial results.

CITI-REVISED EARNS

NEW YORK (AP) -- Citigroup is slashing its third-quarter earnings by $600 million, saying that recent investigations by regulators have altered the results it reported earlier this month.

The New York-based bank on Thursday revised its quarterly net income to $2.8 billion from a previously reported $3.4 billion, citing legal expenses.

The bank's operating expenses rose from $12.36 billion to about $13 billion.

The company said in a statement the unexpected increase came from "rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters."

Citi previously reported third-quarter net income of $3.44 billion, or $1.07 per share, on Oct. 14. The results exceeded Wall Street estimates.

Like other major banks, Citigroup has been the target of lawsuits and government investigations for its role in the mortgage meltdown that helped spur the financial crisis of 2008.

SURGICAL GOWNS LAWSUIT

LOS ANGELES (AP) -- A lawsuit says Kimberly-Clark Corp. falsely claimed its surgical gowns met the highest standards for protecting against Ebola and other infectious diseases.

Lead attorney Michael Avenatti says the Texas hospital where two nurses contracted Ebola used to stock the gowns but it's not clear if the nurses had used them.

The $500 million fraud suit was filed Wednesday in federal court in Los Angeles on behalf of a surgeon who wore the gowns.

The lawsuit says Kimberly-Clark knew for a year that the gowns failed industry tests and allowed the transfer of bodily fluids, bacteria and viruses, but the company still promoted them as having the highest level of impermeability.

The maker of Kleenex and other consumer products says it doesn't comment on lawsuits but stands behind its products' safety.

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