Quality Distribution Agrees to $800 Million Sale to Private Equity Firm
The price of $16 per share was 63% above the May 6 closing stock price, the joint statement said.
The move was the third major merger and acquisition announcement in a month, after plans by FedEx Corp. to buy Dutch freight and package operator TNT NV for $4.8 billion and the $3.5 billion deal between XPO Logistics and Norbert Dentressangle.
“Quality Distribution believes that the transaction provides its shareholders with an attractive premium that delivers immediate compelling value for their shares,” the statement said.
It also said that Quality, which ranks No. 34 on the Transport Topics Top 100 list of for-hire carriers in the United States and Canada, can entertain alternative bids in a 40-day period after a definitive merger deal is reached with Apax.
The sale price includes debt assumption.
The seller’s board approved the deal, which now must be approved by its shareholders.
Quality CEO Gary Enzor said, “Apax supports our strategy. They will bring financial resources and expertise that will assist us as we expand Quality Distribution through internal investment and initiatives as well as disciplined acquisitions.”
Quality’s service offerings include intermodal, depot services and logistics.
Ashish Karandikar, a partner on Apax’s services team, said, “Quality is well-positioned to take advantage of both organic growth opportunities and strategic acquisitions while benefiting from the financial and operational flexibility of operating as a private company.”
The statement also said financing has been secured Deutsche Bank AG and other institutions.
