Ryder Systems Inc. plans to sell its Salt Lake-based trucking company and repurchase up to 15 percent of its common stock.
M. Anthony Burns, chairman, president and chief executive officer, said the system's board of directors has authorized the repurchase of up to 15 percent, or 12 million, of the company's common shares over two years.Discussions are also underway to sell Freight Systems, the company's full-truckload common carrier based in Salt Lake. Burns said he is confident the potential acquirer will keep the operation in Utah.
Ryder is also negotiating the sale of its freight and customs brokerage company and its domestic packing ans shipping concern.
He said the company has hired Morgan Stanley & Co. to explore the sale of its Insurance Management Services Division, which includes managing general insurance agencies in Florida, Texas and Alabama, two reinsurance companies and a reinsurance broker.
"While the division has been a quality provider of services to the insurance market and a good profit contributor, it does not have an important strategic fit with Ryder System's core businesses and is probably more valuable to another company," Burns said.
The sales of the four companies are expected to produce $100 million in cash proceeds.
"We want to put a sharper focus on growing our highway transportation and aviation services core business," Burns said. "These other businesses probably have more value and a brighter future in the hands of other owners."