(Reuters) - XPO Logistics Inc (XPO.N) said it will buy logistics company Pacer International Inc PACR.O in a deal valued at $335 million (204.5 million pounds), the Wall Street Journal reported.
Under the terms of the deal, Pacer shareholders will receive $6 in cash and $3 of XPO common stock for each Pacer share, the newspaper said. (link.reuters.com/cas75v)
Pacer’s shares closed at $8.33 on Friday on the Nasdaq.
The deal, expected to close in the second quarter, will boost XPO’s rail services and give it a big fleet of domestic containers that can ride on both truck and rail, the WSJ said. It will also double XPO’s annual revenue to about $2 billion.
XPO Logistics said it obtained a commitment from Credit Suisse AG CSGN.VX for up to $325 million in a senior secured term loan, both to fund the Pacer deal and for general corporate purposes, the report said.
Greenwich, Connecticut-based XPO has been on an acquisition spree. In August, it bought 3PD Holding from Bahrain-based investment house Arcapita.
XPO and Pacer were not immediately available for comment by Reuters outside regular U.S. business hours.
Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Supriya Kurane