Western Express to Acquire Smithway for $90 Million
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Truckload carriers Western Express and Smithway Motor Xpress Corp. said Friday that Western would acquire Smithway for $10.63 per share, in a deal worth about $90 million.
The terms have been approved by both companies’ boards and the deal, in which publicly traded Smithway would become a wholly owned subsidiary of privately held Western, is expected to close this summer, the two said.The deal includes about $54 million in equity value and totals about $90 million including Smithway’s debt. Shares of Smithway’s shares rose $1.35 to $10.35 a share midday Friday, Bloomberg reported.The acquisition will build on Western’s dry van operations by combining the dry van operations of both companies, the two said in a statement.Smithway’s flatbed operations also will give Western the market presence and reputation to make the combined flatbed operation a force in the industry.The companies would operate about 1,600 tractors in dry van operations and 1,400 tractors in flatbed operations, they said.Smithway is ranked No. 94 on the Transport Topics 100 list of for-hire carriers in the United States and Canada.
Truckload carriers Western Express and Smithway Motor Xpress Corp. said Friday that Western would acquire Smithway for $10.63 per share, in a deal worth about $90 million.
The terms have been approved by both companies’ boards and the deal, in which publicly traded Smithway would become a wholly owned subsidiary of privately held Western, is expected to close this summer, the two said.The deal includes about $54 million in equity value and totals about $90 million including Smithway’s debt. Shares of Smithway’s shares rose $1.35 to $10.35 a share midday Friday, Bloomberg reported.The acquisition will build on Western’s dry van operations by combining the dry van operations of both companies, the two said in a statement.Smithway’s flatbed operations also will give Western the market presence and reputation to make the combined flatbed operation a force in the industry.The companies would operate about 1,600 tractors in dry van operations and 1,400 tractors in flatbed operations, they said.Smithway is ranked No. 94 on the Transport Topics 100 list of for-hire carriers in the United States and Canada.
