DB Schenker Acquires American Transport Provider USA Truck

DB Schenker and USA Truck (NASDAQ: USAK) today announced an agreement for DB Schenker to acquire all outstanding shares of USA Truck for $31.72 per share in cash. This values USA Truck at approximately $435 million, including assumed cash and debt.

(Berlin/Essen) The merger underscores the shared goal of DB Schenker and USA Truck to become a leading provider of transportation solutions in North America. Following the completion of the transaction, DB Schenker will expand USA Truck’s market position in North America. The offering to USA Truck’s customers will be enhanced by DB Schenker’s global logistics expertise as well as air and ocean freight services. At the same time, USA Truck’s network in the U.S. and Mexico will strengthen DB Schenker’s services in global land, air, and ocean transportation, as well as comprehensive supply chain solutions.

About USA Truck

USA Truck was founded in 1983 and provides comprehensive capacity solutions for a wide range of customers in North America, including more than 20 percent of the FORTUNE 100 companies. USA Truck’s strengths include 2,100 employees, a fleet of approximately 1,900 trucks, and partnerships with over 36,000 active contract carriers. With its strategic network of terminals in the eastern United States and its nationwide presence as a third-party logistics provider, USA Truck meets the growing demands of both regional and national customers.

“USA Truck is the perfect partner for our goal of expanding DB Schenker’s network in North America and strengthening our position as a leading logistics provider worldwide,” said Jochen Thewes, CEO of DB Schenker. “We are excited to welcome an outstanding freight and logistics provider to DB Schenker in our 150th anniversary year. Together, we can enhance our service offerings for existing and new customers and invest in growth and sustainable logistics solutions.”

“This transaction is a recognition of the culture of excellence that James, his team, and all our dedicated employees have created and for which they strive every day at USA Truck. It rewards our shareholders for their unwavering support during our turnaround and throughout the pandemic and provides our customers with new opportunities to leverage USA Truck’s strengths by utilizing the resources and reach of one of the world’s leading logistics providers,” said Alexander Greene, Chairman of USA Truck.

“We are thrilled to have found a partner who appreciates the great history of USA Truck, is closely aligned with our mission and values, and brings the resources to build on our nearly 40 years as a market leader,” said James Reed, President and Chief Executive Officer of USA Truck. “This transaction provides USA Truck shareholders with value, enables expanded career opportunities for our employees, and offers more capacity and service options for our customers. This positions USA Truck even better to realize the long-term vision of becoming the leading North American provider of transportation solutions.”

Joe Jaska, Executive Vice President Land Transport Region Americas at DB Schenker, said: “The success of USA Truck is based on its employees, who will also be crucial for future growth. As part of DB Schenker, we offer USA Truck employees new career opportunities both locally and globally. We at DB Schenker look forward to welcoming them as an integral part of our team. This transaction is the starting point for joint growth. The merger of the two companies will enhance our position in the North American land transport sector.

About the Transaction

The transaction, which was unanimously approved by the Board of Directors of USA Truck, is subject to certain regulatory reviews and approvals as well as the satisfaction of other customary closing conditions, including the approval of USA Truck shareholders. Upon completion of the transaction, which the parties expect to occur by the end of 2022, USA Truck will be delisted from the NASDAQ Global Select Market. The transaction is not subject to a financing condition.

Advisors

Evercore is serving as financial advisor and Scudder Law Firm, P.C., L.L.O. is serving as legal advisor to USA Truck.

Morgan Stanley & Co. Int. PLC is serving as financial advisor and Latham & Watkins LLP as legal advisor to DB Schenker.

Photo: © DB Schenker