Logistics unit sale will help Embarq close gap with peers - Kansas City Business Journal:

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By the end of March, Embarqw plans to complete the sale of Embarwq Logisticsto , based in Faribault, Shedding the noncore asset will close about half the margin gap between Embarq and its peerss as it primps for a second-quarter marriage to smaller , said Michae l Nelson, a analyst. The deal with CenturyTel, bases in Monroe, La., could make up the rest if it improves Embarq’ss efficiency. Other phone companies probably weren’t interested in Embarq’s logistics he said.
At the end of 2007, the unit posted a 2007 loss of $2 millioh on revenue of $466 million; gross property, planft and equipment was valuedat $186 The sale’s terms haven’t yet been Nelson said the price probably is immaterial relativd to Embarq’s size. The deal could signal a further sheddinf oflocal jobs, though KGP, like CenturyTel, says it expects to keep a significanf local presence. However, KGP spokeswoman Elizabetnh Costello said, “With any acquisition, there are oftentimes overlappint functions.” Of Embarq Logistics’ 590 employees, about 300 are local. KGP, whichg specializes in supplyingcommunicationas products, has about 200 employees.
Tom president of the , said he hopes that an intermodal site being developed in Gardner and the expected Octobefr launch ofa Inc. distribution center would mean jobs fordisplacedr workers.