DB Schenker, the world's third largest logistics provider, announced the acquisition of USA Truck in an all-stock deal to accelerate its presence in the United States.
DB Schenker said it will buy all common shares of USA Truck (NASDAQ: USAK) for $31.72 per share in cash, a 118% premium to its pre-transaction share price of $24. The deal values USA Truck at about $435 million, including cash and debt. Cowen, an investment bank, said it estimated that the deal represents 12 times the expected return for USA Truck shareholders.
The companies said they expect the deal to close by the end of the year and THAT USA Truck will become a private company.
Early last year, DB Schenker executives gave media interviews that foreshadowed a major acquisition of an American trucking company.
The mega-third-party logistics company added truck services in the U.S. and Canada in 2021 by beefing up its sales force and outsourcing its truck operations to other operators. These operators used trailers owned by DB Schenker. A special gold truck visits customers around the country to show off DB Schenker's abilities.
The deal is part of a wider trend in which the lines between asset-based freight forwarders and service-centred freight forwarders are blurring. Global logistics providers are increasingly offering more end-to-end control over transportation due to high demand and supply chain disruptions.
The logistics giant said it will use its resources to expand USA Truck's footprint in North America.
After the merger, DB Schenker will sell air, Marine and supply chain management services to USA Truck customers, while providing direct trucking services in the U.S. and Mexico to existing customers. DB Schenker officials say their expertise in freight and customs broking gives the company a natural advantage in handling cross-border shipments, which they see as a lucrative market opportunity.
USA Truck, based in Van Buren, Ark., has posted seven straight quarters of record earnings, with 2021 revenue of $710 million.
USA Truck has a mixed fleet of about 1,900 trailer heads, operated by its own employees and more than 600 independent contractors. USA Truck employs 2,100 people and its logistics department provides freight forwarding, logistics, and intermodal services. The company says its clients include more than 20 percent of fortune 100 companies.
"USA Truck is a perfect fit for DB Schenker's strategic ambition to expand our network in North America and is well positioned to cement our position as a leading global logistics provider," said Jochen Thewes, CEO of DB Schenker. "As we mark our 150th anniversary, we are pleased to welcome one of the leading freight and logistics providers to Deutsche Cinker. Together, we will advance our shared value proposition and invest in exciting growth opportunities and sustainable logistics solutions for new and existing customers."
With total sales of more than $20.7 billion, DB Schenker employs more than 76,000 people in more than 1,850 locations in 130 countries. It operates a large zero-carload network in Europe and manages more than 27m square feet of distribution space in the Americas.
There are plenty of recent examples of global freight companies expanding into freight and logistics, including shipping giant Maersk, which recently acquired Last-Mile E-commerce delivery and an air freight agency and started using its in-house air freight to serve its customers. ; CMA CGM, another shipping company, also launched an air cargo business last year and has acquired several major logistics companies in the past four years.
USA Truck's Board of Directors unanimously approved the sale to DB Schenker, which is subject to regulatory review and other customary closing conditions, including approval by USA Truck's Stockholders.
Post time: Jun-29-2022