- DB Schenker will buy all outstanding shares of USA Truck with a transaction value of USA Truck of approximately $435 million.
- This agreement will benefit both parties and this is a platform to grow and increase their coverage in North America.
- This could be an impetus for logistics companies globally to make similar agreements in the future.
The expensive deal between two big companies
Founded in 1983, USA Truck has a resource of 1,900 trucks, 2,100 employees, and established partnerships with more than 36,000 carriers. The company also has a strategic terminal network across the eastern half of the United States, providing capacity solutions to meet the growing needs of customers regionally and nationally.
Under the agreement, DB Schenker will buy all outstanding shares of USA Truck for $31.72 per share, with a transaction value of USA Truck of approximately $435 million.
Joe Jaska, Executive Vice President of DB Schenker Land Transport in the US, says USA Truck’s success is in part due to its impressive staff, and they are always welcome as an integral part of the company. As part of a large organization with DB Schenker, USA Truck employees will have access to great regional and global career opportunities. This agreement is a platform to grow and increase the coverage of both companies in the land transportation system in North America.
From handshake to the ambition
Once the deal is completed, DB Schenker intends to help strengthen and expand USA Truck’s coverage in North America, and will also apply its transportation services to bring greater benefits to USA Truck’s current customer base.
In addition, based on USA Truck’s extensive freight network in the US and Mexico, DB Schenker plans to expand its global logistics services across trucking, air freight and sea transport, as well as comprehensive solutions for supply chain management.
Ben Gordon, the managing partner of Cambridge Capital and BGSA Holdings, believes that DB Schenker acquired USA Truck for several key reasons. First, Schenker overpaid, equivalent to a 118% premium for USA Truck, which was due to higher stock prices and shareholder expectations months ago. Second, DB Schenker believes in the long-term growth of the transportation and logistics market in the US and this could be an impetus for logistics companies globally to make similar agreements in the future.