UTi acquires 3PL provider and announces stock split
UTi Worldwide Inc., a global logistics company, said Tuesday it has acquired Portland-based Market Industries Ltd., a privately held provider of third-party logistics services and multimodal transportation capacity services specializing in truck brokerage, for $197.1 million in cash, subject to certain closing, working capital and tax-related adjustments.
Market Industries provides a variety of domestic freight management services, branded under the trade name Market Transport Services, to clients across North America, UTi said in a statement.
For the fiscal year ended Dec. 31, Market Industries generated gross revenue of approximately $358.9 million.
“This acquisition is a further testament to UTi’s commitment to deliver value in its long-term strategic journey,” said Roger I. MacFarlane, chief executive officer of UTi Worldwide. “We believe that freight management is an important and necessary element in providing our clients a truly global integrated logistics solution.”
Over a 36-year history, Market Industries has built a broad portfolio of transportation services, including truckload brokerage, dedicated transportation, intermodal services and other supply chain management functions. It is one of the largest independent, asset-light transportation companies in the United States, featuring a network of agents, broker affiliates, owner-operators, select company-owned assets and technology and information systems to design and deliver transportation services and capacity solutions to its customer base.
Market Industries has about 600 employees, along with independent contractor associates and about 175 independent affiliates and agent offices.
The acquisition of Market Industries was funded by a combination of Uti cash reserves and the proceeds from a new $150 million senior secured six-month term credit facility.
UTi also said Tuesday its board of directors has declared a three-for-one split of the company’s ordinary shares. Shareholders of record as of the close of business on March 17 will receive two additional shares for each one share held on the record date.
“The board’s decision to split the stock is in recognition of the significant appreciation in UTi’s stock price since the company’s initial public offering in the U.S. in November 2000,” MacFarlane said. “With our market capitalization now exceeding $3 billion, we believe this split will provide additional liquidity and enhance the attractiveness of the stock to a broader investor group.”