Knight Transportation (KNX) announced that it has proposed to acquire all of the outstanding shares of USA Truck (USAK) for $9.00 per share in cash, valuing the equity of USA Truck at approximately $95M. The total value of the proposed transaction is approximately $242M, including USA Truck’s approximately $147M of outstanding net indebtedness. The proposal represents a significant premium of approximately 39% to USA Truck’s closing price on September 25, the last trading day prior to this announcement. Knight also announced today that it has filed a Schedule 13D with the U.S. Securities and Exchange Commission disclosing ownership of 829,946 shares of USA Truck common stock, representing approximately 8% of USA Truck’s shares outstanding. The transaction is expected to be accretive to Knight’s expected earnings per share in 2014 and beyond. Knight’s consolidated operating ratio for the six months ended June 30 was 85.3%, compared with USA Truck’s consolidated operating ratio of 101.7% during the same period, and Knight expects to realize considerable operational improvements at USA Truck.
- Investment & Company Information
- USA Truck
- Knight Transportation