A mammoth German logistics company announced it is purchasing a leading U.S. trucking company.
DB Schenker Friday announced it will acquire all outstanding shares of USA Truck common stock for $31.72 per share in cash. The transaction values USA Truck at about $435 million, including assumed cash and debt, according to the German company.
In a post on its website, Schenker said:
"The combination advances DB Schenker and USA Truck’s shared vision to become the premier North American transportation solutions provider. Upon completion of the transaction, DB Schenker aims to strengthen and expand USA Truck’s presence in North America, while utilizing its complementary international logistics expertise, air transport services and ocean gateways to benefit USA Truck’s existing customer base. 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."
USA Truck has some 1,900 trucks, 2,100 employees, partnerships with more than 36,000 active contract carriers, strategic network of terminals across the Eastern half of the U.S. and a nationwide third-party logistics presence.
With more than 76,000 employees at more than 1,850 locations in over 130 countries, DB Schenker, a 100 percent subsidiary of Deutsche Bahn, is one of the world’s leading logistics providers. DB Schenker is one of the largest integrated logistics service providers with more than 10,000 employees in 123 locations providing over 27 million square feet of distribution operations to clients in North America.
The transaction, which has been unanimously approved by USA Truck’s Board of Directors, is subject to regulatory reviews and approvals and the satisfaction of other customary closing conditions, including the approval of USA Truck stockholders. Upon completion of the transaction, which the parties expect will occur by the end of 2022, USA Truck will become a private company and delist from NASDAQ Global Select Market.
"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.," said James Reed, USA Truck's CEO. "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.”