Wabash National to Buy Truck Body Maker Supreme
Photo: Wabash National
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Photo: Wabash National
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Trailer maker Wabash National Corp. (NYSE:WNC) will acquire truck body maker Supreme Industries, Inc. (NYSE MKT:STS), the two Indiana-based manufacturers announced late on August 12.
The driving factor behind the buy was cited as the impact that the rising tide of e-commerce shipping business is having on the need for more “final mile” deliveries.
“Wabash National has been closely monitoring the transportation landscape as the growth of e-commerce has continued to change the logistics model,” said Dick Giromini, CEO of Wabash National, 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,” he continued. “This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer.”
“Combining with Wabash will enhance our ability to innovate more quickly and create more value for customers,” said Supreme Industries CEO Officer Mark Weber. “We found a cultural fit with Wabash National. Because of their commitment to safety, innovation and customer relationships, I’m confident joining the Wabash National family will benefit our employees, customers and distributors.”
The firms stated they have entered into a definitive agreement under which Wabash National would acquire all of the outstanding shares of Supreme in a cash tender offer for $21 per share, which represents an equity value of $364 million and an enterprise value of $342 million.
Wabash National, launch in 1985 in Lafayette Ind., is among North America’s top producers of semi-trailers and liquid transportation systems. Its products include dry van and reefer trailers and truck bodies as well as platform and bulk tank trailers. Founded in 1974, Goshen, Ind.-based Supreme is one of the largest U.S. manufacturers of truck bodies, …Read the rest of this story
