XPO Logistics To Acquire Pacer International In $335 Mln Deal : WSJ

(RTTNews) - XPO Logistics Inc. (XPO) agreed to acquire Pacer International Inc. (PACR) in a deal valued at $335 million, the Wall Street Journal reported.

As per terms of the deal, Pacer International shareholders would receive $6 in cash and $3 of XPO common stock for each share of Pacer. The deal has been approved by the boards of directors of both companies, the Journal said.

The WSJ reported that the transaction is expected to close in the second quarter. The Pacer acquisition would boost annual revenue of XPO Logistics to about $2 billion from about $1 billion. The addition of Pacer would greatly bolster XPO Logistics' ability to provide rail services and give it a big fleet of domestic containers that can ride on both truck and rail.

XPO Logistics reportedly said it had 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, which could include potential future transactions. XPO Logistics reportedly said the Pacer acquisition wasn't conditioned on obtaining the financing.

XPO closed Friday's trading at $28.03, up $0.72 or 2.64%. PACR closed trading at $8.33, down $0.13 or 1.54%.