Echo Global Logistics announced that it has entered into a definitive agreement to acquire Command Transportation, LLC, a privately held truckload broker and non-asset based transportation provider in the US.
Echo will acquire all of the outstanding membership units of Command Transportation for approximately $420m, subject to post-closing adjustments for working capital and cash. Out of the purchase price $25m will be paid in the form of Echo common and restricted stock. Command Transportation had 2014 revenue of $561m. It is headquartered in Skokie, Illinois, with satellite locations in Houston, St. Louis, and Kansas City.
Echo has obtained commitments from Morgan Stanley, Credit Suisse and PNC of up to $500m to fund the purchase price of the transaction and for general corporate purposes.
In 2014, Echo and Command had combined revenue of $1.73bn. In addition, upon completion of the transaction, the combined company will have more than 1,680 sales representatives in 34 offices across the US and a nationwide carrier network of truckload carriers. The combined company will be able to offer greater capacity and a broader network to both transactional and managed transportation clients, as well as a broader suite of services for both companies’ existing clients.
Doug Waggoner, Chief Executive Officer of Echo said, “Since the founding of Echo in 2005, we have achieved remarkable growth and become a best-in-class transportation solutions provider by focusing on superior technology and exceptional service across all modes of transportation. Through this highly complementary combination, we are taking the next step in our evolution to create a stronger company that we believe is even better positioned for long-term success.”
