XPO Announces Stock Sale, Reveals Preliminary Earnings Report
XPO Logistics Monday announced plans to offer 15 million shares of its common stock to help pay for its purchase of Ohio-based Pacer International.
by Staff
January 27, 2014
2 min to read
XPO Logistics Monday announced plans to offer 15 million shares of its common stock to help pay for its purchase of Ohio-based Pacer International.
Earlier this month the Connecticut-based XPO announced it was purchasing the third largest intermodal provider in North America and hopes to close on the deal during the second quarter of the year.
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Under the terms of the proposed transaction, shareholders of Pacer will receive $6 in cash and $3 of XPO Logistics common stock for each share of Pacer common stock, subject to a price collar, for a total market value of $335 million and a total enterprise value of $296 million.
XPO says if the Pacer acquisition is not completed, it will use all of the net proceeds of the offering for general corporate purposes.
XPO on Monday also released preliminary expected financial results for the fourth quarter of 2013.
“The company has achieved its 2013 targets for an annual revenue run rate of more than $1 billion as of Dec. 31 and positive earnings before interest, taxes, depreciation and amortization for the fourth quarter,” it said in a statement.
XPO said expects its financial results for the fourth quarter to show total revenue in the range of $256 million and $258, reflecting an increase of 135% to 137%, respectively, from the fourth quarter of 2012, with gross profit in the range of $52.5 million and $53.5 million, an increase of 610 to 630 basis points from the gross margin percentage of 14.4% for the fourth quarter of 2012.
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