Covenant Acquiring HazMat Hauler in Deal Worth Up To $55 MILLION
Chattanooga, TN — Covenant Logistics Group announced this week the acquisition of Chattanooga, TN-based AAT Carriers, Inc. in a deal worth up to $55 million.
In a press release, the Tennessee mega carrier stated AAT will become a part of Covenant’s expedited segment.
AAT specializes in hauling hazardous materials as well as other “high security” loads.
“Our primary area of expertise is in transporting weapons, ammunition, and explosives,” AAT’s website states.
The purchase price includes a substantial earn-out component based on the acquired business’ adjusted earnings before interest, taxes, depreciation, and amortization reported for the first and second years following closing, according to Covenant.
It is expected to range from $35 million to $55 million.
In 2021, AAT generated approximately $25 million in revenue.
According to data from the Federal Motor Carrier Safety Administration (FMCSA), AAT has 65 drivers and 40 power units.
Covenant currently operates a fleet of nearly 1,100 trucks and over 2,100 drivers, FMCSA data indicates.