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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
C U R R E N T R E P O R T
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 28, 1997
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CALIBER SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Ohio 0-10716 34-1365496
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
3925 Embassy Parkway, Akron, Ohio 44333
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(Address of principal executive offices)
Registrant's telephone number, including area code (330) 665-5646
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Caliber System, Inc. Form 8-K
INFORMATION REQUIRED IN REPORT
Item 5. Other Events
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The Registrant's news release dated May 28, 1997, a copy of which is attached
hereto as Exhibit 99, is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits.
99 Caliber System, Inc. News Release dated May 28, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
CALIBER SYSTEM, INC.
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REGISTRANT
Date: May 30, 1997 By: /s/ J.E. Lynch
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John E. Lynch, Jr.
Vice President, General Counsel
and Secretary
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EXHIBIT INDEX
Exhibit No. Description
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99 Caliber System, Inc. News Release dated May 28, 1997.
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NEWS RELEASE [CALIBER LOGO]
Investor Contact: Investor Relations CALIBER SYSTEM, INC.
(330) 665-8814 3925 Embassy Parkway
P.O. Box 5459
Akron, OH 44334-0459
Media Contact: Dina Gruey (330)665-5646
(330) 665-8849 http://www.calibersys.com
FOR IMMEDIATE RELEASE
MAY 28, 1997
CALIBER SYSTEM SIGNS DEFINITIVE AGREEMENT
TO SELL FORMER CENTRAL FREIGHT LINES
AKRON, OHIO --Caliber System, Inc. (NYSE: CBB) has signed a definitive
agreement to sell the operations of Viking Freight's Southwestern Division --
the territory served by the former Central Freight Lines -- to senior Central
management and the Moyes Group of Swift Transportation.
Under the terms of the agreement, Caliber will receive $43 million in cash
and will retain 35 properties that the company will sell at a later date.
Additionally, the investor group, which intends to operate under the name
Central Freight Lines, Inc., will assume $22 million in liabilities. The total
value of the sale, including the anticipated proceeds from the retained
properties, is estimated at approximately $80 million.
"We are pleased with the outcome of our negotiations with the future owners
of Central," said Daniel J. Sullivan, Chairman, President and CEO of Caliber
System. "After completing competitive bidding with several potential buyers,
we agreed on a final sale price which is substantially higher than the
liquidation value of the assets. More importantly, this sale has allowed us to
preserve the jobs of about 4,000 employees who will be retained as part of the
deal."
Sullivan said that the transaction will strengthen Caliber's balance sheet
as the proceeds from the sale of Central will reduce outstanding debt. The
transaction, which is expected to close on or before June 30, will have no
impact on Caliber's future 1997 earnings.
Central Freight Lines, which will operate 57 terminals in eight
southwestern states, will continue its close working relationship with Viking
Freight, Caliber's less-than-truckload carrier serving 12 western states, to
provide seamless service to customers in both regions.
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CALIBER SYSTEM, INC.
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Caliber System is a leading provider of value-added transportation,
logistics and related information services. Its operating companies include RPS,
a business-to-business small-package carrier; Viking Freight, a supplier of
regional freight service in the West; Caliber Logistics, a contract logistics
provider; Roberts Express, a critical-shipment carrier; and Caliber Technology,
a producer of systemwide information services. By combining its operating units'
products and services, Caliber offers integrated, customized solutions that
meet customer demand for more comprehensive transportation and logistics
programs.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties are detailed from time to time in
reports filed by the Company with the Securities and Exchange Commission,
including Forms 8-K, 10-Q and 10-K.
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