Universal Truckload Purchasing Westport Axle
December 02, 2013
Universal Truckload Services announced Monday that it will acquire Westport Axle Corporation from an international industrial group headed in Brazil by SM Brasil Participações S/A.
Based in Louisville, Ky., Westport provides 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.
The cash purchase price is $123 million and is subject to a post-closing adjustment. To finance the acquisition, Universal anticipates increasing its senior credit facility to $300 million. It expects to receive regulatory approval for the transaction and close in late this month.
“The acquisition of Westport strategically enhances our customer base by further penetrating industrial markets, specifically to manufacturers of medium and heavy-duty trucks,” said Scott Wolfe, Universal CEO. We believe that Westport’s value-added services and limited capital requirements fit nicely into Universal’s business model and long-term growth strategy.
Warren, Mich.-based Universal Truckload Services is an asset-light provider of customized transportation and logistics solutions throughout the United States, Mexico and Canada.