Activist investor HG Vora Capital Management LLC is offering to acquire
Ryder System Inc.
in a $4.4 billion deal that would take the fleet management and supply-chain operator private.
HG Vora owns a 9.9% stake in Ryder and said in a regulatory filing Thursday it is proposing to buy the rest of the transportation and logistics company’s outstanding shares at $86 a share, a 20% premium to its closing price Thursday.
Ryder’s shares, which fell as much as 25% from late March to mid-April amid growing inflation and other signs of weakness in the U.S. economy, rose more than 18% in trading Friday to $83.77 following a trading pause for volatility around the announcement of the acquisition proposal.
Miami-based Ryder said in a statement it will “carefully review and evaluate the indication of interest” to determine what is in the best interest of its shareholders.
Ryder’s stock traded close to $90 a share as recently as October 2021 but slipped back to as low as $63.11 a share, the closing price on April 8, as concerns about inflation and potential weakness in the U.S. weighed on investors.
Ryder, which has been undertaking an ambitious expansion of its supply-chain services business, earned a $519 million net profit last year, swinging from a $122.3 million loss in 2020 as the Covid-19 pandemic battered supply chains.
The company recently raised its guidance for the year, to a range of $13 to $14 adjusted earnings per share from $11 to $12 per share, after first-quarter revenues jumped 28% year-over-year to $2.85 billion.
HG Vora said it would fund the acquisition with capital from its own funds as well as lender commitments.
Ryder said
Morgan Stanley
& Co. is acting as financial adviser on the acquisition offer and Wachtell, Lipton, Rosen & Katz is acting as legal adviser.
Write to Lydia O’Neal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the May 14, 2022, print edition as ‘Investor Seeks Ryder Buyout.’
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.