Pacer International Acquisition and Its Impact

Pacer International was acquired by J.B. Hunt Transport Services in 2014, marking a significant shift in the company's ownership and operations.

The acquisition brought a substantial fleet of trucks and a large network of terminals under J.B. Hunt's umbrella, expanding its capabilities in the less-than-truckload (LTL) market.

Pacer International's extensive presence in the western United States and Canada allowed J.B. Hunt to strengthen its position in these regions, providing customers with more comprehensive coverage.

As a result of the acquisition, J.B. Hunt was able to streamline its operations and reduce costs, ultimately benefiting its customers with more efficient and cost-effective services.

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XPO Logistics completed its acquisition of Pacer International in a cash and stock transaction valued at approximately $335 million.

The acquisition makes XPO Logistics the third largest provider of intermodal services in North America and the largest cross-border Mexico provider.

XPO Logistics now has access to more than 60,000 miles of network rail routes through its contractual arrangements with rail carriers.

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XPO Logistics has completed its acquisition of Pacer International in a cash and stock transaction valued at approximately $335M.

Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said the acquisition makes XPO a major player in the fast-growing intermodal sector.

The company financed the cash portion of the acquisition through a combination of cash on hand and a portion of the net proceeds of its recent $414M public offering of common stock.

Daniel Avramovich, former chief executive officer of Pacer, has assumed new responsibilities as XPO's senior vice president of strategic development.

The transaction makes XPO Logistics the third largest provider of intermodal services in North America.

XPO Logistics has 122 locations and approximately 3,100 employees.

XPO Logistics now has access to more than 60,000 miles of network rail routes through its contractual arrangements with rail carriers.

The company manages approximately 17,000 company-controlled containers and has access to more than 100,000 additional big and small boxes.

XPO Logistics facilitates more than 22,000 deliveries a day throughout the U.S., Mexico, and Canada.

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The proposed merger between Pacer and XPO has left many shareholders wondering if it's a good deal for them. The $9.00 consideration represents a one day premium of 8.04% based on Pacer's closing price on January 3, 2014.

This premium is substantially below the average one day premium of 48.13% for comparable transactions in the last three years. The $9.00 merger consideration is also below the $10.00 target price set by an analyst at PI Financial Corp. on November 19, 2013.

Pacer's recent financial results show a promising trend. For the third quarter ended September 20, 2013, the company's earnings per share more than doubled from the same quarter 2012 to $0.08.

The company also reported an increase in income from operations of $2.7 million to $5.0 million while net income increased $1.7 million to $2.8 million over the same period.

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Pacer International's operational details are a testament to its efficient logistics network. The company's headquarters was located in Greenville, Delaware, and it operated a fleet of over 7,000 trailers.

Pacer International's services included intermodal transportation, which allowed for the transfer of goods between different modes of transportation, such as trucks and trains. This helped reduce transportation costs and increased efficiency.

The company's fleet was equipped with advanced technology, including GPS tracking and automated cargo handling systems. This enabled Pacer International to optimize its routes and reduce transit times.

Pacer International's services were designed to meet the needs of its customers, including flexibility and reliability. The company offered a range of services, including dedicated contract carriage and expedited freight.

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