Banking Recap

UNIVERSAL LOGISTICS HOLDINGS, INC. Announces Acquisition for $193.6M

Universal Logistics Holdings, Inc. (NASDAQ: ULH) announced its acquisition of Parsec, LLC, Parsec Intermodal of Canada ULC, and OB Leasing, LLC (collectively, "Parsec"), a market-leading provider of terminal management services to Class I, regional, and short-line railroads across North America, for a cash purchase price of $193.6 million, subject to customary post-closing adjustments. The deal is in the trucking and logistics sector (SIC 4213).

Sep 30, 2024·SEC EDGAR (8-K)·pending regulatory·all-cash acquisition of a rail terminal operator

Deal value

This entry is sourced from an 8-K exhibit (Exhibit 99.1) filed by Universal Logistics Holdings, Inc. with the SEC on September 30, 2024, announcing that the acquisition had already closed. Parsec, with nearly 2,100 employees, offers terminal services at over 20 rail yards in the U.S. and Canada, including container lift on/off, crane and intermodal equipment repair, drayage, and container/chassis stacking; for the trailing twelve months ended August 31, 2024, Parsec reported total operating revenues of $230.2 million. Parsec was to operate within Universal's contract logistics segment, with the acquisition expected to be immediately accretive and to boost that segment's annualized revenues to over $1 billion.

On financial advisory, Livingstone Partners served as exclusive financial advisor to Parsec, the target. No financial advisor to Universal Logistics (the acquirer) is named in this press release.

On legal advisory, Dykema Gossett PLLC and Vistula PLC served as Universal's legal advisors on the transaction, while Katz Teller served as Parsec's legal advisor.

The deal structure disclosed is a straightforward all-cash acquisition at $193.6 million, already closed as of the press release date, with the purchase price subject to customary post-closing adjustments.

What is not disclosed: the press release does not name a financial advisor representing Universal Logistics in the transaction, does not break out the $193.6 million price into components (e.g., working capital adjustments, earnouts), and does not specify an exact closing date beyond the September 30, 2024 announcement date.