VANCOUVER — ActionView International has postponed its move into the trucking business after the Montana outfit it was eyeing filed for Chapter 11.
Two entities of Jim Palmer Trucking – Jim Palmer Equipment and Jim Palmer Equipment II – filed for Chapter 11 in a Montana court on July 10. The court filing will permit a reorganization of the companies’ contractual and debt obligations under the bankruptcy laws of the U.S. It is expected that Jim Palmer Trucking will also file for Chapter 11 bankruptcy protection.
ActionView International had been evaluating acquisition candidates for several months before announcing a letter of intent back in May to acquire the Missoula, Mont.-based refrigerated carrier Jim Palmer Trucking.
ActionView International’s initial business venture was to custom design, develop and manufacture illuminated motion billboards. In just a few years, the ad company expanded from a few malls in Vancouver to locations around the world, including the United Arab Emirates, Australia, the U.S. and China.
"It was our intention from the time we first became involved with ActionView International to target the best possible acquisition candidate," commented Steven Peacock, ActionView CEO, in May. "While the disclosure of specific financial information for Jim Palmer Trucking will be part of the closing process, we can say that ActionView management is confident that Jim Palmer Trucking is a high quality company that we believe has a tremendous future operating in the public markets."
Jim Palmer Trucking was established in 1966 and today operates in 44 states with a fleet of 350 trucks and 500 trailers. The fleet’s top five customers by percentage of revenues include Anheuser Busch, the Kroger Co., Coors Brewing Company, C.H. Robinson Worldwide, and Tyson Foods.
"The financial information we received in our early due diligence on Jim Palmer Trucking does not appear to be consistent with their true financial condition at that time,” said Peacock, after the Chapter 11 filing. “We have been in communication with both the company and its representatives and will continue to monitor the situation as it develops, especially as it relates to the capital that was loaned to Jim Palmer Trucking as part of the proposed acquisition transaction with ActionView International.”
The Vancouver-based company had other acquisitions in mind before settling on Jim Palmer Trucking, and may head down one of those other routes.
“We will turn our attention to alternative acquisition opportunities for ActionView International,” added Peacock. “We do have additional companies targeted in the event that a transaction with Jim Palmer Trucking did not close. We expect to announce the next steps in our acquisition strategy as soon as possible."
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