DB Schenker announces agreement to acquire USA Truck

Earlier today, Essen, Germany-based 3PL company DB Schenker announced it had signed an agreement to acquire USA Truck, a Van Buren, Ar-based provider of loading and logistics services.

Under the terms of the agreement, DB Schenker said it would acquire all of USA Truck’s outstanding common stock for $31.72 per share in cash, adding that the transaction values ​​USA Truck at approximately $435 million, including including cash and debt assumed.

Founded in 1983, USA Truck provides capacity-based services for its North American business portfolio, which includes more than 20% of the Fortune 100. It has a fleet of 1,900 trucks, 2,100 employees, partnerships with more of 36,000 active contract carriers, a strategic network of terminals in the eastern half of the United States, as well as a national third-party logistics presence provide capacity solutions to meet the changing demands of regional and national customers, according to DB Schenker .

The company explained that this agreement boosts the joint vision of DB Schenker and USA Truck to become the leading transportation solutions provider in North America. And he said that when the transaction closes, DB Schenker intends to strengthen and expand USA Truck’s presence in North America, and leverage its complementary international logistics expertise, airline and its maritime gateways for the benefit of USA Truck’s existing customers. Additionally, he also noted that building on USA Truck’s existing U.S. and Mexican freight network, DB Schenker plans to expand its global logistics services into ground, air, and ocean transportation services, as well as end-to-end solutions. for logistics and global supply chain management.

“USA Truck’s success is due to its awesome employees, all of whom are critical to future growth, and we look forward to welcoming them as an integral part of our team,” said Joe Jaska, executive vice president of DB. Schenker, Land Transport, Americas. Region, in a press release. “As part of a larger organization with DB Schenker, USA Truck employees will have access to local and global career opportunities. We view this transaction as a platform for growth and by combining these organizations, we will significantly strengthen our presence in the North American ground transportation space.

Ben Gordon, Managing Partner of Cambridge Capital, an investor in niche supply chain leaders, and also Managing Partner of BGSA Holdings, a leading M&A advisory firm focused on the transport technology sector , logistics and supply chain, told LM that the DB Schenker’s acquisition of USA Truck is notable for several reasons.

“First of all, it’s aggressively priced,” he said. “Schenker paid a premium of 118% when USA Truck closed. This is likely because it was traded months ago when the price (and shareholder expectations) were higher. Second, it shows that Schenker believes in the long-term upside of the US transportation and logistics market. They don’t pay that price for short-term reasons. And they aren’t worried about short-term headwinds for the freight business. Third, it could be a catalyst for other global logistics companies to explore deals. This could provide valuation support for the entire publicly traded transportation and logistics industry.

About the Author

Jeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics management, Modern material handlingand Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine where he covers all aspects of the supply chain, logistics, freight forwarding and material handling industries on a daily basis. Contact Jeff Berman

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