Van Buren-based USA Truck is being bought by Germany-based DB Schenker in a $435 million deal expected to close by the end of the year. The deal is for $31.72 per share of USA Truck (NASDAQ: USAK) and was approved by the USA Truck board of directors.
Company shares closed Thursday at $14.58, meaning the acquisition price target represents a 117.5% premium. The share price jumped above $30 in early Friday trading.
The deal also will see the company delist from NASDAQ and become a private company with Schenker’s global logistics operation. The deal has a possible termination date of March 23, 2023, if the deal is not completed by that date. The deal also includes a $10 million breakup fee to be paid by USA Truck if it pursues another acquirer or takes other prescribed actions.
Schenker, based in Essen, Germany, is a 150-year-old company with more than 76,000 employees at more than 1,850 locations in over 130 countries. The company operates land, air, and ocean transportation services, and can provide single source logistics and global supply chain management.
Founded in 1983, USA Truck is a long-haul trucking and logistics/supply chain provider. The company has about 1,900 trucks, 2,100 employees, and partnerships with more than 36,000 active contract carriers. The company also has a network of terminals in the eastern U.S., and a freight network in Mexico.
“USA Truck is the perfect match for DB Schenker’s strategic ambition to expand our network in North America and foster our position as a leading global logistics provider,” Jochen Thewes, CEO of DB Schenker, said in the statement. “In our 150th anniversary year, we are pleased to welcome one of the leading trucking and logistics providers to DB Schenker. Together we will enhance our shared value proposition and invest in exciting growth opportunities and sustainable logistics solutions for new and existing clients.”
Schenker said it build upon USA Truck’s operations in the U.S. and Mexico to expand its global logistics services using land, air, and ocean transportation.
Building upon USA Truck’s existing U.S. and Mexico freight network, DB Schenker also intends to expand its global logistics services across land, air, and ocean transportation services, as well as comprehensive solutions for logistics and global supply chain management.
“We are thrilled to have found a partner that appreciates USA Truck’s rich history, is closely aligned with our mission and values, and brings additional resources that we believe enable us to build on our nearly 40-year legacy of industry leadership,” James Reed, president and CEO of USA Truck, said in the statement. “This transaction provides immediate and significant value for USA Truck stockholders, offers broadened career opportunities for our employees and increased capacity and service offerings with which to support our customers, and better positions our company to realize our long-term vision to become the premier North American transportation solutions provider.”
The press release and USA Truck’s 8-K filing about the deal does not provide information on the future of the company’s headquarters operations in Van Buren.
Talk Business & Politics will update this story later today.