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It appears that Wall Street is undervaluing Echo Global Logistics.
In a deal announced Friday morning, private equity firm Jordan Co., which has 3PL experience at a previous GlobalTranz ownership, said it was acquiring Echo for $ 48.25 a share.
This is about a 54% premium over the Echo (NASDAQ: ECHO) stock closing price on Thursday of $ 31.32.
The deal will remove Echo from the public stock markets. In its prepared statement, Echo said the transaction would provide it with “additional resources and greater flexibility to continue building its technology and data science platform and enhance its value proposition to shippers and consumers. carriers “.
The sale has the unanimous support of Echo’s board of directors, the company said.
Jordan describes itself as a “mid-size private equity firm” with $ 17 billion under management.
On its website where it notes its investment portfolio, Jordan lists four companies in the transportation and logistics category: Capstone, which provides transportation management services primarily in distribution centers; AIT, a 3PL and large-based freight forwarder; Odyssey Logistics, also a 3PL; and Transimpact, which is in the management of supply chains involving packages.
Jordan had owned GlobalTranz, but only for eight months between 2018 and 2019 before returning it to Providence Equity Partners. GlobalTranz and WorldWide Express announced their intention to merge in June.
In its latest quarterly earnings report, Echo reported revenue of $ 934.5 million for the three months ended June 30. He also listed 2,736 employees for the Chicago-based company.
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