XPO Logistics to buy Pacer International in deal valued at $335 million - WSJ

Reuters

(Reuters) - XPO Logistics Inc said it will buy logistics company Pacer International Inc 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. (http://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 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)

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