Universal Logistics announced it has acquired rail terminal operator Parsec for $193.6 million. The deal is expected to be immediately accretive to Universal’s earnings.
Cincinnati-based Parsec provides terminal management services at 20 rail yards across North America. The company specializes in container lift services for Class I, regional and short-line railroads. It also offers drayage, container and chassis stacking, equipment maintenance, and equipment sales and leasing.
Parsec has 2,100 employees and generated $230.2 million in revenue for the 12-month period ended Aug. 31.
“This strategic acquisition further enhances our value-added service offering, and provides Universal a meaningful presence in the rail terminal services space,” said Universal CEO Tim Phillips in a news release.
Parsec will become part of Universal’s (NASDAQ: ULH) contract logistics segment, pushing annual revenue in the unit to more than $1 billion. The unit had 5,400 employees prior to the acquisition.
Including Universal’s intermodal, trucking and company-managed brokerage segments, the company generated a total of $1.66 billion in revenue last year.
Shares of ULH were off 0.1% at 11:35 a.m. EDT on Tuesday compared to the S&P 500, which was down 1%.
| Acquisition price | $193.6M |
| Parsec’s revenue run rate | $230.2M |
| Universal’s revenue run rate (2023) | $1.66B |
| Earnings expectations | immediately accretive |
| Recent acquisitions by Universal | Elliott Custom Brokers, Roadrunner Intermodal Services, Southern Counties Express, Fore Transportation |