Knight Transportation makes bid to buy USA Truck
The Phoenix-based Knight may consider “modestly” raising its bid if it finds more value in USA Truck during a due diligence process, sources reported.
The Trucker News Services
Knight Transportation Inc. has made an offer to buy USA Truck.
Knight wants to purchase all of the outstanding shares of USA Truck for $9 a share in cash, putting the equity of USA Truck at about $95 million.
The transaction’s total value, however, is estimated to be $242 million and would include USA Truck’s some $147 million in outstanding debt. Knight reportedly has already purchased about 8 percent of USA Truck’s outstanding stock.
The Phoenix-based Knight may consider “modestly” raising its bid if it finds more value in USA Truck during a due diligence process, according to a Yahoo Finance report.
Shares of USA Truck spiraled up 39 percent to $2.53 in morning trading on Thursday.
Kevin Knight, chairman and CEO of Knight Transportation, said in a letter last month to USA Truck Board of Directors that his company had “invested significant time and effort” to purchase USA Truck and expressed “frustration” over an earlier bid rejection, according to published reports.
The Van Buren, Ark.-based USA Truck has been in the midst of a turnaround effort, and has been without an annual profit since 2008.
Knight had projected that the proposed buyout would add to its 2014 and future earnings.
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