Roger W. Gilroy |
Trailer maker Wabash National Corp. has reached an agreement to acquire truck-body manufacturer Supreme Industries in a cash tender offer for $21 per share, which represents an equity value of $364 million and an enterprise value of $342 million — in light of growing e-commerce opportunities.
Wabash has formed an acquisition subsidiary, Redhawk Acquisition Corp., to facilitate the merger, subject to customary closing conditions, according to a company announcement, adding that the transaction is expected to close no later than the fourth quarter of 2017.
Founded in 1974, Supreme Industries is the second-largest U.S. manufacturer of truck bodies, with 2016 sales of $299 million, according to Lafayette, Ind.-based Wabash. Supreme, based in Goshen, Ind., primarily manufactures light- and medium-duty truck bodies at seven factories across the United States.
“Wabash National has been closely monitoring the transportation landscape as the growth of e-commerce has continued to change the logistics model,” Wabash CEO Dick Giromini said in a statement. “We formally entered the final-mile space in 2015 with the launch of our dry and refrigerated truck bodies, and we have been aggressively growing our presence and product offering over the past two years. This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer.”