Western Express Inc. and Smithway Motor Xpress Corp., two premier truckload carriers that haul diversified freight nationwide, have announced agreement on a plan for Western to acquire Smithway.
The acquisition terms have been approved by both companies' boards of directors, and the transaction is expected to close in the summer of 2007, subject to approval by Smithway's stockholders and other customary closing conditions.
The acquisition is expected to build upon Western's established dry van operation by combining the dry van operations of both companies. Additionally, Smithway's flatbed operation is expected to offer Western the market presence and reputation to make the combined flatbed operation a force in the industry.
On a combined basis, the companies would operate about 1,600 tractors in dry van operations and 1,400 tractors in flatbed operations. Smithway's experienced senior management team and employees are expected to remain at Smithway and play integral roles in delivering the companies' combined services to the truckload market.
Under the acquisition agreement, stockholders of Smithway will receive $10.63 in cash for each share of Smithway for a total equity value of approximately $54 million and a total enterprise value, including Smithway's existing debt, of approximately $90 million. The transaction is structured as a merger, whereby Smithway will become a wholly owned subsidiary of Western.
The acquisition terms have been approved by both companies' boards of directors, and the transaction is expected to close in the summer of 2007, subject to approval by Smithway's stockholders and other customary closing conditions.
The acquisition is expected to build upon Western's established dry van operation by combining the dry van operations of both companies. Additionally, Smithway's flatbed operation is expected to offer Western the market presence and reputation to make the combined flatbed operation a force in the industry.
On a combined basis, the companies would operate about 1,600 tractors in dry van operations and 1,400 tractors in flatbed operations. Smithway's experienced senior management team and employees are expected to remain at Smithway and play integral roles in delivering the companies' combined services to the truckload market.
Under the acquisition agreement, stockholders of Smithway will receive $10.63 in cash for each share of Smithway for a total equity value of approximately $54 million and a total enterprise value, including Smithway's existing debt, of approximately $90 million. The transaction is structured as a merger, whereby Smithway will become a wholly owned subsidiary of Western.
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