DB Schenker announced that it will acquire truckload carrier USA Truck in a US$435 million deal that would bolster its reach in North American freight markets.
The agreement will see DB Schenker acquire all outstanding shares of USA Truck common stock for US$31.72 per share in cash and the transaction will also assume cash and debt.
"The combination advances DB Schenker and USA Truck's shared vision to become the premier North American transportation solutions provider," the German logistics solution provider said.
Boosting North America presence
"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," DB Schenker added.
In its announcement, DB Schenker said building upon USA Truck's existing US and Mexico freight network, it also intends to expand its global logistics services across the land, air, and ocean transportation services, as well as comprehensive solutions for logistics and global supply chain management.
Founded in 1983, USA Truck provides comprehensive capacity solutions to a diverse North American customer base, including more than 20% of the FORTUNE 100.
USA Truck's approximately 1,900-unit fleet of trucks, 2,100 employees, partnerships with more than 36,000 active contract carriers, and a strategic network of terminals across the Eastern half of the United States.
"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. 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," said Jochen Thewes, chief executive officer of DB Schenker.
James Reed, president, and chief executive officer of USA Truck noted that DB Schenker's mission and values "closely align" with the company.
"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," Reed said.
"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."
Deal to be finalized by end 2022
DB Schenker noted that the transaction, which has been unanimously approved by USA Truck's Board of Directors, is subject to certain 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.
DB Schenker noted that the transaction is not subject to any financing condition.