Knight Offers to Acquire USA Truck
Knight Transportation has offered to buy fellow truckload carrier USA Truck for $9 a share, an offer USA Truck said undervalues the company.
The offer’s value is about $242 million, including $95 million cash and $147 million in outstanding debt, Knight said. The cash portion represents a 39% premium over USA Truck’s Sept. 25 closing price on the Nasdaq stock exchange.
“Knight and USA Truck operate in complementary service lines, and this proposed transaction would create an operationally and financially stronger transportation company that is better positioned to deliver value for all of our stakeholders,” Knight Chairman and CEO Kevin Knight said in a statement. “Our company has a demonstrated history of operational excellence, and we believe that we can meaningfully increase the financial performance of USA Truck’s operations.”
In a statement late Sept. 26, USA Truck said it was “disappointed” with the takeover offer.
The carrier’s board of directors “unanimously concluded that the proposal substantially undervalues USA Truck and is not in the best interests of USA Truck and its shareholders,” it said.
Knight initially made its offer Sept. 6, but USA Truck rejected it, both companies said.
USA Truck said in its recent statement that it is open to negotiations with Knight.
The transaction could close as early as the fourth quarter of this year, Knight said.
Knight said it owns about 8% of USA Truck’s shares. Knight said it offered to acquire USA Truck earlier in September, but USA Truck declined.
Knight is ranked No. 31 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers. USA Truck is ranked No. 52.
