The recent removal of a poison pill provision allowed investors to take a larger stake in USA Truck. Two groups took advantage of the move in recent weeks and now are joining the Van Buren-based trucking company’s board of directors.
USA Truck, which has been shrinking its losses after losing money for five years and has fought off a hostile takeover bid, said it has reached a “cooperation agreement” with shareholders Baker Street Capital Management, LLC and Stone House Capital Management, LLC. Collectively, the two groups own 28% of USA Truck’s shares.
Under the terms of the agreement, USA Truck will appoint Vadim Perelman, Managing Partner and Chief Investment Officer of Baker Street Capital, and Thomas Glaser to the company’s Board of Directors. With the addition of Perelman and Glaser, the USA Truck board expands to nine members.
“As always, the USA Truck Board is dedicated to creating value for our shareholders and we appreciate the constructive input that Baker Street Capital and Stone House Capital have provided towards our mutual goal over the past several months,” said USA Truck Chairman Robert A. Peiser. “We welcome both Vadim Perelman and Tom Glaser to the Board.”
“We expect Vadim to be a constructive member of our Board who will add valuable financial and strategic expertise that will help us accelerate the execution of our turnaround plan. Tom has been a senior transportation executive for almost three decades and served as a consultant to USA Truck in 2012 and as interim Chief Operating Officer in 2013. His deep knowledge of the trucking industry and USA Truck, combined with his sound judgment and professionalism, will also further the Company’s turnaround plan,” Peiser added.
In a joint statement, Perelman and Glaser commented, “We are pleased to join USA Truck’s Board of Directors. We look forward to working with management and the Board to improve operational and financial performance. Having met with the Company’s management team and Board, we believe the greatest opportunity for maximizing shareholder value over the long term is the successful execution of the Company’s standalone plan to restore USA Truck to a best-in-class, profitable truckload and logistics company.”
USA Truck shares (NASDAQ: USAK) closed trading on Thursday (May 22) at $15.47. The company’s stock has traded between $5.28 and $19.57 per share during the past 52 weeks.