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Avalon Holdings to Sell Transportation Operations
HOWLAND TOWNSHIP, Ohio -- Avalon Holdings Corp. has reached an agreement in principle to sell its transportation operations, reports Ronald E. Klingle, chairman of the board. Avalon anticipates selling all of the common stock of DartAmerica Inc. to BMC International Inc. for approximately $4.4 million.As a result of the sale, Avalon is expected to incur a charge in the second quarter of 2004 estimated to be between $2.5 million and $3 million."As we have previously disclosed, we have been evaluating the business and prospects of the transportation operations during the past several months because we have been unable to profitably operate DartAmerica over the last few years," Klingle says. "In the second quarter of 2004, we discontinued certain operations in New England. While initially expressing interest in our remaining New England operations, BMC offered to acquire our entire transportation business."BMC will provide for the continuation of DartAmerica as a major national transportation company. "We intend to focus our efforts toward maximizing shareholder value through our remaining businesses, including American Waste Management Services Inc. and American Landfill Management Inc., and we are excited about the prospects of our golf and related operations," Klingle says.As a result of the purchase of DartAmerica, BMC also will be acquiring DartAmerica's wholly owned subsidiaries including Dart Trucking Company Inc. and Dart Services Inc. and will assume Dart's operating lease obligations of approximately $5 million. Prior to the sale, DartAmerica will transfer to Avalon its Canfield, Ohio, terminal and all accounts receivable outstanding for more than 60 days as of the closing date.The final sale price will be adjusted to reflect changes in certain of DartAmerica's balance sheet items from March 31 to June 30. The understanding reached with BMC is subject to finalization of acquisition documentation and the transaction will be contingent upon BMC completing its financing arrangements and obtaining required insurance coverages. It is anticipated that the transaction will close early in the third quarter.Avalon Holdings Corp. provides transportation services and waste management services to industrial, commercial, municipal and governmental customers and owns the Avalon Golf and Country Club, which operates two golf courses and related facilities. Visit Avalon Holdings Corp.: www.avalon-holdings.com"