DB Schenker buys USA Truck for $435 million

USA Truck stockholders to receive $31.72 per share in cash, a premium of 117 percent to last close.

DB Schenker buys USA Truck for $435 million

DB Schenker, one of the world's leading logistics service providers, and Nasdaq-listed USA Truck, a leading capacity solutions provider, announced an agreement under which DB Schenker will acquire all outstanding shares of USA Truckfor $31.72 per share in cash, a premium of over 117 percent to yesterday's close of $14.58.

"The transaction values USA Truck at approximately $435 million, including assumed cash and debt," according to an official release from DB Schenker.

The combination advances DB Schenker and USA Truck's shared vision to become the premier North American transportation solutions provider, the release added.

"Building upon USA Truck's existing U.S. and Mexico freight network, DB Schenker also intends to expand its global logistics services across 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 percent of Fortune 100 companies. "USA Truck's approximately 1,900-unit fleet of trucks, 2,100 employees, partnerships with more than 36,000 active contract carriers, strategic network of terminals across the Eastern half of the United States and a nationwide third-party logistics presence provides capacity solutions to meet the evolving demands of both regional and national customers."

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, says Jochen Thewes, Chief Executive Officer, DB Schenker. "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."

James Reed, President and Chief Executive Officer, USA Truck adds: "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. 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 realise our long-term vision to become the premier North American transportation solutions provider."

Joe Jaska, Executive Vice President Land Transport, Americas Region, DB Schenker, added: "USA Truck's success has been driven by their impressive employees – all of whom are critical to future growth – and we look forward to welcoming them as an integral part of our team. As part of a larger organisation with DB Schenker, USA Truck employees will have access to career opportunities at both the local and global level. We view this transaction as a platform for growth and by combining these organisations, we will greatly enhance our presence in the North American land transport space."

With more than 76,000 employees at more than 1,850 locations in over 130 countries, DB Schenker, a 100 percent subsidiary of Deutsche Bahn, is one of the world's leading logistics providers, the statement said. "In the Americas, DB Schenker is one of the largest integrated logistics service providers with more than 10,000 employees in 123 locations providing over 27 million sq. ft. of distribution operations to its clients."

The transaction, which has been unanimously approved by USA Truck's Board of Directors, is likely to be completed by the end of 2022. Upon completion of the transaction, USA Truck will become a private company and delist from NASDAQ Global Select Market, the statement said.

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