Wabash NationalLafayette, Ind.-based Wabash National Corp., a leading producer of semi-trailers and liquid transportation systems, has entered into an agreement to acquire Supreme Industries of Goshen, Ind.

The closing of the acquisition, expected to occur no later than the fourth quarter, is not subject to any financing condition. Wabash has obtained committed bridge financing from Morgan Stanley Senior Funding Inc. and Wells Fargo Bank. The purchase price is expected to be funded by a combination of notes and cash.

Founded in 1974, Supreme is the second largest U.S. manufacturer of truck bodies with 2016 sales of $299 million. The company primarily manufactures light and medium-duty truck bodies at seven facilities throughout the United States. Customers include national rental fleets, national and regional leasing companies, truck dealers and fleet operators.

Under the purchase agreement, Wabash National would acquire all of the outstanding shares of Supreme in a cash tender offer for $21 per share, which represents an equity value of $364 million and an enterprise value of $342 million.

Wabash National is North America’s leading producer of semi-trailers and liquid transportation systems, according to the company. Established in 1985 in Lafayette, Ind., the company manufactures a range of products, including dry freight and refrigerated trailers, platform trailers, bulk-tank trailers, dry and refrigerated truck bodies, truck-mounted tanks, and intermodal equipment. Its products are sold under the following brand names: Wabash National, Beall, Benson, Brenner Tank, Bulk Tank International, DuraPlate, Extract Technology, Garsite, Progress Tank, Transcraft, Walker Engineered Products, and Walker Transport.


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“Wabash National has been closely monitoring the transportation landscape as the growth of e-commerce has continued to change the logistics model,’’ said Dick Giromini, Wabash National’s chief executive officer. “We formally entered the final-mile space in 2015 with the launch of our dry and refrigerated truck bodies, and we have been aggressively growing our presence and product offering over the past two years. This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer.’’

“Combine Supreme’s extensive medium and light-duty commercial vehicle portfolio, distribution network, and regional manufacturing locations with Wabash National’s advanced composite technologies, expertise in lean manufacturing and optimization, engineering and design proficiency and strong supplier relationships’’

The acquisition will “combine Supreme’s extensive medium and light-duty commercial vehicle portfolio, distribution network, and regional manufacturing locations with Wabash National’s advanced composite technologies, expertise in lean manufacturing and optimization, engineering and design proficiency and strong supplier relationships,’’ Wabash National officials said.

Wabash National expects to deliver at least $20 million in annual run-rate cost synergies by 2021. The expected cost synergies are primarily driven by corporate and procurement expenditures, and operational improvement savings. In addition, over time, Wabash National expects to achieve significant incremental revenue opportunities that neither company could obtain on a standalone basis, company officials said.

More information is available at both www.wabashnational.com and www.supremecorp.com.


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