XPO Logistics (NYSE: XPO) is adding to its acquisition streak and buying Pacer International Inc. (Nasdaq: PACR) for $335 million.
Dublin, Ohio-based Pacer facilitates domestic freight movements through network railway routes. The company also provides truck brokerage, warehousing and distribution, global freight forwarding services and supply-chain management services.
XPO, headquartered in Greenwich, Conn., provides transportation logistics services through ground, sea and air carriers. The company bought the Michigan-based supply chain subsidiaries of Landstar Systems Inc.(Nasdaq: LSTR) in December. In July, the company bought 3PD Inc., a logistics services provider, for $365 million. Before that, in October 2012, the company bought the brokerage division of Ozburn-Hessey Logistics LLC.
Under the terms of the deal, Pacer shareholders would receive $6 in cash and $3 of XPO Logistics common stock per share of Pacer common stock. The deal is expected to close in the second quarter. XPO has a commitment from Credit Suisse AG for up to $325 million in senior-secured term loan facilities to fund the deal and potential future acquisitions.
Credit Suisse Securities (USA) LLC is serving as XPO Logistics’ financial adviser, while Wachtell Lipton Rosen & Katz is providing legal advice. Morgan Stanley & Co. LLC is Pacer’s financial adviser, and Winston & Strawn LLP is legal counsel.
For more on logistics M&A, see “Logistics, Logistics, Logistics.”