Universal Truckload Services to acquire Westport Axle Corporation
Universal Truckload Services, Inc. announced that it will acquire the sole shareholder of Westport Axle Corporation (“Westport”) from an international industrial group headed in Brazil by SM Brasil Participacoes S/A.
Based in Louisville, Kentucky, Westport provides value-added warehousing and component distribution services to U.S. manufacturers of Class 4-8 trucks, RVs and super-duty trucks. Westport also machines and distributes steering knuckles and axle components for the automotive industry. For the year-ended December 31, 2012, Westport had operating revenues of $58.4 million, and $66.0 million for the nine months ended September 30, 2013.
The cash purchase price is $123.0 million and is subject to a post-closing adjustment. To finance the acquisition, Universal anticipates increasing its senior credit facility to $300.0 million. Universal expects to receive regulatory approval for the transaction and close in late December 2013, subject to customary closing conditions.
“We are very excited about the opportunities this new partnership brings to Universal,” commented Scott Wolfe, Chief Executive Officer. “The acquisition of Westport strategically enhances our customer base by further penetrating industrial markets, specifically to manufacturers of medium and heavy-duty trucks. We believe that Westport’s value-added services and limited capital requirements fit nicely into Universal’s business model and long-term growth strategy. We look forward to working with Westport’s proven management team to enhance their already-strong customer relationships as we further expand Universal’s value to our customers.”
About Universal
Universal Truckload Services, Inc. is a leading asset-light provider of customized transportation and logistics solutions throughout the United States, Mexico and Canada. We provide our customers with supply chain solutions that can be scaled to meet their changing demands and volumes. We offer our customers a broad array of services across their entire supply chain, including transportation, value-added, and intermodal services. More info at: http://goutsi.com
Category: General Update
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