USA Truck, Inc. (NASDAQ: USAK) is a provider of trucking and logistics services across North America. Shares of the trucking company are skyrocketing 111% through early trading on Friday, June 24, 2022. Over the past three months, USA Truck has seen average daily volume of 146,120 shares. However, volume of 1.68 million shares or dollar volume of around $51.73 million, has already exchanged hands through early trading.
Shares of USA Truck are soaring after the company announced it has entered into a merger agreement with DB Schenker, which is set to create a premier North American transportation solutions provider. Under the terms of the agreement, DB Schenker will acquire all the outstanding shares of USA Truck at a price per share of $31.72 in cash. This gives the transaction an approximate value of $435 million, including cash and debt.
Upon closing of the merger, DB Schenker aims to boost USA Truck’s North American footprint, while leveraging its complementary international logistics, air transportation services, and oceanic solutions to offer USA Truck’s customer base with greater access. In conjunction with the planned expansion for USA Truck, DB Schenker says it will make its own global logistics expansion a priority.
The strong customer base of USAK cannot be understated. Over 20% of the Fortune 100 is a part of the trucking company’s base. Furthermore, the transportation company has a truck fleet surpassing 1,900 units, employs 2,100 people, and maintains active partnerships with over 36,000 contract carriers, strategic terminal networks, and third-party logistics providers.
The merger agreement has been approved by USA Truck’s Board of Directors and will still need shareholder and regulatory approval before the deal can be finalized. Management estimates the transaction will close by the end of 2022. Upon closing, USA Truck will become a private company and no longer trade on the NASDAQ Global Select Market.
“We are thrilled to have found a partner that appreciates USA Truck’s rich history, is closely aligned with our mission and values, and brings additional resources that we believe enable us to build on our nearly 40-year legacy of industry leadership,” said James Reed, President and Chief Executive Officer of USA Truck. “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.”
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