2022-07-14
Category:
Industry news
Author:
Rob

DB Schenker is set to buy USA Truck for about $435 million. DB Schenker ranks in the top three worldwide logistics providers in terms of revenue earned. It is also a division of the national railway company of Germany. It aims to increase its presence in the U.S. domestic market. 

According to an article by the American Shipper, DB Schenker will pay for the shares plus all transactions. The deal will come to a close by the end of the year. DB Schenker officials shared the vision to make this acquisition back last year. USA Truck made good sales in the U.S. and Canada, attracting DB Schenker. Global logistics providers have begun doing end-to-end transportation. Depending on third-party contractors has become a problem due to supply chain issues.

Match made in heaven

DB Schenker and USA Truck is a "match made in heaven". USA Truck customers will now have access to air and ocean shipping. Those in the U.S. and Mexico will continue enjoying direct trucking. DB Schenker officials believe that their international prowess will greatly boost their ventures in the U.S. They view cross-border trucking as a big opportunity to explore.

USA truck has made record earnings for seven consecutive quarters. They made $710 million in the past year. They have both their fleets and others owned by individual contractors. DB Schenker is clear that they will work with USA Truck's 2100 workers. They were integral in putting the company on the map. DB Schenker will open doors for them both locally and on the international market. 

Given the amount of investment DB Schenker is making, they highly value the business. It shows that they are here to stay. They are not so worried about the immediate supply chain challenges at hand. They look to get a return on investment in the future. Opening access to local and global markets will drive the business towards good numbers. Given that USA Truck was a performing company, it is an advantage for DB Schenker. So, they will have a good starting point.

DB Schenker Set to Buy USA Truck

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