DB Schenker acquires USA Truck for $435M
- DB Schenker is acquiring USA Truck in a £435 million deal, the two companies announced Friday.
- As part of the deal, DB Schenker is paying cash for all outstanding shares of USA Truck common stock, at a price of £31.72 per share. If approved, USA Truck will be folded into DB Schenker's Land Transport Division in the Americas Region.
- The two parties expect the acquisition will close by the end of 2022, at which point USA Truck would become a private company. The transaction is subject to shareholder and regulatory approvals.
The acquisition is part of DB Schenker's ambition to become a full-service supply chain provider in the United States - and around the world.
The company said it intends to build upon USA Truck's existing network and expand its services across land, air and sea. "We view this transaction as a platform for growth and by combining these organizations, we will greatly enhance our presence in the North American land transport space," said Joe Jaska, DB Schenker's executive vice president of land transport for the Americas region, said in a release. DB Schenker embarked on a buying binge over the past few years as the Germany-based company looks to expand its global reach.
Its acquisitions haven't been contained to the United States. DB Schenker announced in January that it purchased two transport companies in Spain as part of a plan to build out its European network. USA Truck will bolster DB Schenker's freight presence in the U.S.
The trucking company has approximately 2,100 employees and boasts a fleet of 1,900 trucks. The carrier also has a "strategic network of terminals across the Eastern half of the United States," according to the release. In a letter to community organizations, USA Truck said the merger will allow it to substantially expand its offerings and give customers access to a larger international footprint plus more services, such as "international freight forwarding, customs brokerage and freight consolidation."
USA Truck said in a FAQ about the merger that the deal would not impact the pricing structure of existing services.
No headcount reductions are expected to occur.
"DB Schenker is intent on being among the top land transportation providers in North America and views USA Truck as the ideal platform to build upon," USA Truck said in the FAQ.