DB Schenker's acquisition of USA Truck is a done deal – Modern Materials Handling

Following its late June announcement, signaling it had inked an agreement to acquire Van Buren, Ar.-based truckload and logistics services provider USA Truck, Essen, Germany-based global 3PL DB Schenker said today that the deal is now official.
Under the terms of the deal, DB Schenker said it will acquire all outstanding shares of USA Truck common stock for $31.72 per share in cash, adding that the transaction values USA Truck at roughly $435 million, including assumed cash and debt.
Established in 1983, USA Truck provides capacity-based services for its North American book of business, which includes more than 20% of the Fortune 100. It has a 1,900-truck fleet, 2,100 employees, partnerships with more than 36,000 active contract carriers, a strategic network of terminals across the Eastern half of the United States, as well as a national third-party logistics presence provides capacity solutions to meet the evolving demands of both regional and national customers, according to DB Schenker.
DB Schenker officials said that USA Truck will operate within the DB Schenker network and no longer trade on the NASDAQ exchange, effective today.
“We are very excited to grow our North America operations in terms of both market share and geographical footprint,” said Jochen Thewes, Chief Executive Officer, DB Schenker, in a statement. “This is part of a bold ambition that we will become – together – the premier North American transportation solutions provider.”
The company said that Joe Jaska, Executive Vice President Land Transport for the Americas Region, DB Schenker, will be taking immediate responsibility for the expanded Land Transport services offered by DB Schenker in the United States.
“I have been a strong believer that our teams would fit together perfectly from the first conversation I had with USA Truck because we are so closely aligned with our mission and values. USA Truck’s success has been driven by their impressive employees—all of whom are critical to our future growth—and we are delighted to be welcoming them as an integral part of our team,” said Jaska. “As a combined company, we remain focused on our shared growth vision and look forward to building upon USA Truck’s existing operations as our platform for growth in North America. We expect that customers will benefit from our comprehensive and strengthened global logistics expertise, including complementary international resources, air transport services and ocean gateways.” 
When the deal was first announced in June, the company explained that this agreement spurs DB Schenker and USA Truck’s shared vision to become the premier North American transportation solutions provider. And it said that when the transaction is completed, DB Schenker intends to strengthen and expand USA Truck’s presence in North America, and leverage its complementary international logistics expertise, air transport services and ocean gateways to benefit USA Truck’s existing customer base. What’s more, it also noted that building upon USA Truck’s existing U.S. and Mexico freight network, DB Schenker plans 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.
“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,” said Jaska, at the time. “As part of a larger organization 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 organizations, we will greatly enhance our presence in the North American land transport space.”
Ben Gordon, Managing Partner of Cambridge Capital, an investor in niche supply chain leaders, and also Managing Partner of BGSA Holdings, a leading mergers and acquisitions advisory firm focused on the transportation, logistics, and supply chain technology sector, told LM in June that the DB Schenker acquisition of USA Truck is noteworthy for several reasons.
“First, it’s an aggressive price,” he said. “Schenker paid a 118% premium to USA Truck’s close. This is likely due to the fact that it was negotiated months ago, when the price (and shareholder expectations) were higher. Second, it shows that Schenker believes in the long-term upside of the US transportation and logistics market. They aren’t paying this price for short-term reasons. And they aren’t worried about the short-term headwinds for the freight sector. Third, it could be a catalyst for other global logistics companies to explore deals. This could provide valuation support for the publicly-traded transportation and logistics sector as a whole.”
Increasing budgets and consumer demands drive growth.
Thu, June 9, 2022 – 2:00 pm EDT 


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