LAFAYETTE, IN – Wabash National is purchasing Supreme Industries — the second-largest maker of truck bodies in the U.S. – as an answer to the growing e-commerce segment.
The cash offer is valued at US $21 per share, which equates to an equity value of $364 million and enterprise value of $342 million. The company expects to realize at least $20 million in annual cost savings by 2021, largely through corporate and procurement expenses and operational savings. Supreme, founded in 1974, recorded $299 million in sales last year and has seven facilities across the country. (All figures are in US dollars.)
The Wabash portfolio includes dry freight vans, refrigerated vans, liquid and dry bulk tank trailers, and platform trailers.
“Wabash National has been closely monitoring the transportation landscape as the growth of ecommerce has continued to change the logistics model,” said Dick Giromini, Wabash’s Chief Executive Officer, in a news release. “We formally entered the final mile space in 2015 with the launch of our dry and refrigerated truck bodies, and we have been aggressively growing our presence and product offering over the past two years. This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer.”
The acquisition adds Supreme’s product portfolio, distribution network, and manufacturing capacity to Wabash National’s business, which includes composite technologies, lean manufacturing expertise, engineering, and supplier relationships, the company says.
“This is a great opportunity for both companies to combine our strengths to provide an enhanced customer experience within the growing final mile delivery space,” Giromini added.
Said Supreme Industries’ Chief Executive Officer Mark Weber: “We found a cultural fit with Wabash National. Because of their commitment to safety, innovation and customer relationships, I’m confident joining the Wabash National family will benefit our employees, customers and distributors.”
The deal is expected to close in the fourth quarter of this year, subject to closing conditions.