DB Schenker buys USA Truck Inc
Signed deal to acquire USA Truck Inc for $435 million cash. Producing profits of nearly $25 million on revenues of $710 million.
DB Schenker, a subsidiary of Germany’s national railway Deutsche Bahn, will pay about $435 million in cash for Arkansas-based USA Truck, which last year produced a profit of nearly $25 million on revenues of $710 million. A year earlier, those numbers were $4.7 million and $551 million, respectively.
DB Schenker runs 123 distribution centers spanning more than 27 million square feet in the Americas and plans to connect that air and ocean transport and logistics network to USA Trucks’ 12 terminals.
“USA Truck is the perfect match for DB Schenker’s strategic ambition to expand our network in North America,” said Jochen Thewes, DB Schenker’s chief executive. “Together we will enhance our shared value proposition and invest in exciting growth opportunities and sustainable logistics solutions for new and existing clients.”
USA Truck, which was founded in 1983, runs a fleet of about 1,900 trucks and 6,000 trailers that service more than 600 customers. The carrier runs the 44th largest for-hire fleet in the U.S., according records. Its business is split relatively evenly between trucking, which generated $22.6 million of operating income in 2021, and logistics ($14.7 million last year). The latter grew its top-line strongly in 2021 to more than $323 million. President and Chief Executive James Reed set a goal to grow that number to $400 million by 2024.
The company’s trucking operations are focused on the eastern half of the United States: Eight of its dozen terminals are in Georgia (four), Florida, Illinois, Ohio, and Pennsylvania – and its leaders want to continue down that path.
“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 realize our long-term vision to become the premier North American transportation solutions provider,” Reed said in a statement.
Shares of USA Truck more than doubled June 24 to about $30.75 on the buyout news. The DB Schenker deal, which is expected to close by year’s end, calls for investors to be paid $31.72 per share.
ABOUT USA TRUCK INC.
USA Truck provides comprehensive capacity solutions to a broad and diverse customer base throughout North America. Our Trucking and USAT Logistics divisions blend an extensive portfolio of asset and asset-light services, offering a balanced approach to supply chain management, including customized truckload, dedicated contract carriage, intermodal, and third-party logistics freight management services. For more information, visit usa-truck.com or call 800-643-2530.
About DB Schenker
DB Schenker is the world’s leading global logistics provider, with over 75,800 employees at around 2,000 locations around the world. DB Schenker supports industry and trade in the global exchange of goods through land transport, worldwide air and ocean freight, contract logistics and supply chain management. For more information, visit: dbschenker.com.