Sale of USA Truck approved by shareholders; deal set to close Sept. 15
by September 12, 2022 6:20 pm 1,870 views
Shareholders have approved the sale of Van Buren-based USA Truck to DB Schenker. The estimated $435 million deal – $31.72 per share – was announced June 24 after being recommended by the USA Truck Board of Directors.
A Monday (Sept. 12) filing with the U.S. Securities & Exchange Commission (SEC) showed that 6.46 million shares were voted for the sale, with only 10,311 shares voting against. The filing noted that the deal is expected to be complete Thursday (Sept. 15).
USA Truck shares (NASDAQ: USAK) closed Monday at $31.52, up 17 cents. During the past 52 weeks the share price has ranged between $31.67 and $13.68. The share price closed at $14.58 on June 24.
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 posted 2021 net income of $24.768 million, more than five times 2020 net income and a record for the trucking and logistics company. Full-year revenue was $710.387 million, up 28.9% compared with 2020 revenue of $551.138 million.
In a Sept. 1 SEC filing, USA Truck said the effort to sell the company officially began in early May when Evercore, a global business investment banking advisory firm, made contact on behalf of USA Truck with 10 potential buyers. By May 23, confidentiality agreements had been signed with four “prospective financial bidders.” USA Truck officials also conducted a study to determine a fair value for the company, with the range eventually set between $26.10 and $39.15.
Based on reported share holdings, USA Truck CEO James Reed could receive $9.9 million from the sale to Schenker, and CFO Zachary King could receive $2.286 million.
Talk Business & Politics has attempted to contact USA Truck officials to determine how the sale will impact jobs and operations at the Van Buren headquarters. The company has not responded to messages.