Jan 6 (Reuters) – XPO Logistics Inc said it will buy
logistics company Pacer International Inc in a deal
valued at $335 million, the Wall Street Journal reported.
Under the terms of the deal, Pacer shareholders will receive
$6 in cash and $3 of XPO common stock for each Pacer share, the
newspaper said. ()
Pacer’s shares closed at $8.33 on Friday on the Nasdaq.
The deal, expected to close in the second quarter, will
boost XPO’s rail services and give it a big fleet of domestic
containers that can ride on both truck and rail, the WSJ said.
It will also double XPO’s annual revenue to about $2 billion.
XPO Logistics said it obtained a commitment from Credit
Suisse AG for up to $325 million in a senior secured
term loan, both to fund the Pacer deal and for general corporate
purposes, the report said.
Greenwich, Connecticut-based XPO has been on an acquisition
spree. In August, it bought 3PD Holding from Bahrain-based
investment house Arcapita.
XPO and Pacer were not immediately available for comment by
Reuters outside regular U.S. business hours.
