A $435 million deal is reached for USA Truck
The sale of Van Buren-based USA Truck to a German logistics company was completed Thursday morning and public trading in the company’s shares was halted.
In late June, DB Schenker of Essen, Germany, announced it would buy USA Truck in a deal valued at $435 million, including assumed cash and debt. Shares of the company closed at $31.71 in its last trading day Wednesday on the Nasdaq Global Select Market, according to the company.
“We are pleased to complete this transaction,” USA Truck President and CEO James Reed said in a statement Thursday. “I want to express my gratitude to the USA Truck family of employees, our Board of Directors and everyone associated with our company. We have worked together for a long time to position the company to deliver value meaningful to USA Truck shareholders.”
DB Schenker is a wholly owned subsidiary of Deutsche Bahn, a global logistics company, which provides land, air and sea transportation services, according to the company. It employs more than 76,000 people in 130 countries. In the United States, DB Schenker employs more than 10,000 people at 123 locations.
In response to emailed questions Thursday, Shannon Samples Newton, president of the Arkansas Trucking Association, said USA Truck has been an industry leader for decades and works to support the trucking industry. of the States by its founder Bob Powell, although the outgoing President and CEO. James Red. She noted that Arkansas leads the nation in trucking jobs, employing 1 in 10 Arkansans in the industry.
“While we anticipate some changes with the acquisition by DB Schenker, we are confident that USA Truck will remain a leader in safety, technology and diversity, equity and inclusion,” Samples Newton said. “We look forward to growing our relationship and will continue to rely on USA Truck to be agents of positive change for the trucking industry in Arkansas.”
Marc Scott, assistant professor in the department of supply chain management at the Sam M. Walton College of Business at the University of Arkansas in Fayetteville, said by email that the sale of American trucks is part of a global trend where logistics companies seek to control all aspects of the supply chain, end to end.
“This purchase follows a contemporary industry trend of international buyers purchasing US-based transportation and logistics assets,” Scott said. “Strong consumer demand in the United States, increasingly fueled by the growth of the online sales channel, coupled with strategic initiatives to reduce reliance on China-based supply, has resulted in strong investment and transactions in the US transportation and logistics market.
He said that over the past year, merger and acquisition activity in the U.S. trucking and logistics industry has increased and deal values have increased significantly as buyers enter the market to secure capacity. He said buyers include private equity firms, venture capital firms, sovereign wealth funds and other types of strategic private investors.
Scott said the trend could have other implications for Arkansas industry.
“Within the state, there are large national carriers that have themselves engaged in strategic buy-and-grow activities, which can be expected to continue where and when a target is of strategic importance,” he explained. “On the other hand, many smaller carriers within the state, in some cases driven by the impending dynamic of founders approaching retirement age, may choose to sell to strategic buyers in the capacity market .”
USA Truck, a trucking and logistics company that operates in the United States, Mexico and Canada, was founded in 1983 and has a fleet of approximately 1,900 trucks and employs approximately 2,100 people. It has a network of terminals in the eastern half of the United States, the company said.
Each issued and outstanding share of USA Truck common stock was converted into the right to receive $31.72 in cash, according to the agreement. Shares jumped more than 110% on news of the sale, closing at $31 from $16.42 the day before the sale was announced.
Earlier this month, USA Truck said in a filing with the Securities and Exchange Commission that there were 6.46 million votes in favor of the deal, with 10,311 against and 2,042 abstaining, with about 72% of outstanding shares entitled to vote. In late June, the company said the acquisition had been unanimously approved by USA Truck’s board of directors.