DARTAMERICA Avalon to sell trucking business

The company says it will focus on golf and waste-related businesses.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
HOWLAND -- Avalon Holdings Corp., which has lost money for four straight years, is selling its trucking business for about $4.4 million.
The Howland-based company has reached an agreement to sell DartAmerica to BMC International. Included in the sale is its subsidiary Dart Trucking Co.
Ron Klingle, Avalon Holdings chief executive, couldn't be reached for comment and the press release offered no information on BMC.
Klingle said in the release that Avalon will focus on its remaining businesses, including Avalon Lakes Golf and Country Club, American Waste Management Services and American Landfill Management. The country club operation owns Avalon Lakes in Howland and is leasing Squaw Creek in Vienna.
The trucking business accounts for more than half of Avalon's revenues and employees but has been losing money the past few years.
The company's annual report said the segment lost $100,000 last year, compared with a $2.2 million loss in 2002. The 2002 loss included a $1.9 million accounting charge for an uncollectable debt from a customer.
As of January, Avalon's transportation business employed 177 of its 262 workers and had five terminals, including Canfield.
April message
Klingle told shareholders in April that company officials were reviewing the future of Dart to determine whether to keep all of its operations.
Avalon said it recently closed its two New England terminals and began talking to BMC officials about buying them. As talks progressed, BMC agreed to buy all of Dart.
Dart, which handles hazardous waste and other materials, operates a variety of trucking services, such as flatbeds, trailers and tankers.
Transportation accounted for $31.9 million of Avalon's $53.5 million in revenues last year.
Becoming national
Avalon said the Dart operations will allow BMC, which is a local transportation company, to become a national company.
Avalon said the final sale price will be adjusted after a review of Dart's balance sheet for the second quarter.
The deal with BMC is contingent on completing necessary paperwork and BMC completing financing and obtaining insurance. The companies expect the sale to close before October.
Last year, Avalon sold or closed companies based in Monroeville, Pa., that handled waste remediation and environmental consulting.
Avalon Holdings last year lost $3.6 million.
shilling@vindy.com