DB Schenker Acquires to USA Truck for $435 million

DB Schenker said it will acquire all outstanding shares of USA Truck's common stock for $31.72 per share in cash, a premium of 118% to the pre-trade share price of $24. The transaction is valued at approximately $435 million, including cash and debt.

The acquisition advances DB Schenker and USA Truck's shared vision to become North America's premier transportation solutions provider. Following the transaction, DB Schenker aims to strengthen and expand USA Truck's presence in North America, while leveraging complementary international logistics expertise, air transport services and sea access to benefit USA Truck's existing customer base.

Building on USA Truck's existing US and Mexico freight network, DB Schenker also intends to expand its global logistics services to include land, air and ocean services, as well as integrated solutions for logistics and global supply chain management.

DB Schenker executives say their freight and customs expertise gives the company a natural advantage in handling cross-border freight, which they see as a lucrative market opportunity.

Founded in 1983, Van Buren, Arkansas-based USA Truck provides comprehensive capacity solutions to a diverse North American customer base that includes more than 20% of Fortune 100 companies. The company has a mixed fleet of approximately 1,900 trucks, 2,100 employees working with more than 36,000 active contract carriers, a network of strategic terminals throughout the eastern United States, and a nationwide third-party logistics organization to meet regional and The changing needs of customers across the country provide capacity solutions.

The deal gives DB Schenker access to actual assets on U.S. highways. USA Truck posted seven consecutive quarters of record earnings, with 2021 revenue of $710 million, net income of $25 million, trucking revenue of $441.1 million, and third-party logistics and brokerage revenue of $333.4 million.

The deal is part of a larger trend of blurring the lines between asset-based freight forwarders and service-focused forwarders. With high demand and supply chain disruption, global logistics providers are increasingly offering end-to-end control of shipments to ensure customers have capacity and reliability as it becomes increasingly difficult to rely on third-party contractors .

Jochen Thewes, CEO of DB Schenker, said: "USA Truck is fully aligned with DB Schenker's strategic objective of expanding our transportation network in North America and strengthening our position as a leading global logistics provider. On our 150th anniversary, we are very We are delighted to welcome this leading freight and logistics provider 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 customers."

"We are delighted to have found a partner who appreciates USA Truck's rich history, is deeply connected to our mission and values, and brings additional resources that we believe in," said James Reed, USA Truck President and CEO. Will enable us to build on nearly 40 years of industry leadership. This transaction provides immediate and significant value to USA Truck shareholders, provides broader career opportunities for our employees, and increases our ability to support our customers and services that better enable our company to achieve its long-term vision of being the premier transportation solutions provider in North America."

The transaction has been unanimously approved by USA Truck's board of directors, subject to regulatory review and the satisfaction of other customary closing conditions, including approval by USA Truck shareholders. The parties expect the deal to close by the end of 2022, when USA Truck will become a private company.

It is reported that DB Schenker has total sales of more than 20.7 billion US dollars and has more than 76,000 employees in more than 1,850 locations in 130 countries. The company operates a large less-than-truckload freight network in Europe. The company manages more than 27 million square feet of distribution space in the Americas.