GREENWICH, Conn. (AP) — XPO Logistics Inc. is buying freight transportation and logistics company Pacer International Inc. in a cash-and-stock deal valued at approximately $335 million.
Pacer shareholders will receive $6 in cash and $3 of XPO stock for each share they own. The offer is about an 8 percent premium to Pacer's Friday closing price.
Shares of Pacer rose 26 cents, or 3.1 percent, to $8.59 in premarket trading Monday while shares of XPO Logistics rose 97 cents, or 3.5 percent, to $29.
The combined company will serve about 12,000 customers and provide a broader range of services.
XPO Chairman and CEO Bradley Jacobs will keep his positions as he heads the combined company. Pacer CEO Daniel Avramovich, as well as mostly all of the company's other executives, have agreed to continue to run the operations for that business. Avramovich will become CEO of a newly created XPO division.
Pacer's board unanimously approved the transaction.
Jacobs said that the acquisition is expected to immediately add to XPO's earnings.
The deal is expected to close in the second quarter. It still needs approval from Pacer shareholders.