Echo Global Logistics has announced that it has entered into a definitive agreement to be acquired by funds managed by The Jordan Company, a global private equity firm, for an equity value of approximately $1.3bn. Through this transaction, Echo will become a private company which it expects will provide additional resources and greater flexibility to continue to build its technology and data science platform and enhance its value proposition to shippers and carriers. Echo states the transaction will also allow the company to benefit from the operating capabilities, capital support and sector expertise of The Jordan Company.
The Jordan Company, founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $17bn since 1987, investing in a wide range of industries, including Consumer & Healthcare; Industrials; Technology, Telecom & Utility; and Transportation & Logistics.
Under the terms of the agreement, Echo stockholders will receive $48.25 per share in cash, which represents a premium of approximately 54.0% over Echo’s closing share price on September 9, 2021 and a premium of approximately 32.0% over Echo’s all time high closing share price on September 10, 2018. The definitive agreement was unanimously approved by Echo’s Board of Directors, which recommended that Echo’s stockholders approve the agreement.
Doug Waggoner, Chairman of the Board of Directors and Chief Executive Officer at Echo stated: “Having an experienced financial partner, with resources to fund continued growth, will result in a more rapid expansion of Echo’s supply chain capabilities, including all of the automation planned to enable both our people and our digital freight marketplace.”
The acquisition is subject to customary closing conditions, including stockholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be completed in the fourth quarter of 2021. The closing is not subject to a financing condition.
Source: Echo Logistics