Activist investor HG Vora Capital Management LLC is offering to acquire Ryder System Inc.
in a $4.4 billion deal that will take fleet management and supply chain operators private.
HG Vora owns 9.9 percent of Ryder and said in a regulatory filing Thursday that it is proposing to buy the remainder of the transportation and logistics company’s outstanding shares for 86 USD/share, 20% above Thursday’s closing price.
Shares of Ryder, which fell as much as 25% from late March to mid-April amid rising inflation and other signs of weakness in the US economy, jumped more than 18% in Friday trading. to $83.77 after halting trading due to volatility surrounding the announcement of the proposed buyback.
Miami-based Ryder said in a statement that it will “carefully review and evaluate signs of interest” to determine what is in the best interest of its shareholders.
Shares of Ryder traded near $90 per share as recently as October 2021 but fell back to a low of $63.11 per share closing price April 8, due to inflation concerns inflation and the possibility of weakness in the US weighed on investors.
Ryder, which is conducting an ambitious expansion of its supply chain services business, made a net profit of $519 million last year, changed from a loss of $122.3 million in 2020 when it was The Covid-19 epidemic disrupted the supply chain.
The company recently raised its guidance for the year, to a range of $13 to $14 in adjusted earnings per share from $11 to $12 per share, after first-quarter revenue up 28% year-on-year to $2.85 billion.
HG Vora said it will finance the acquisition with its own funds as well as the lender’s commitments.
Ryder said Morgan Stanley & Co. are acting as financial advisors on the acquisition and Wachtell, Lipton, Rosen & Katz will act as legal advisors.
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https://www.wsj.com/articles/activist-investor-seeks-ryder-buyout-in-4-4-billion-deal-11652470071?mod=pls_whats_news_us_business_f Activist Investor Seeks Ryder Buyout in $4.4 Billion Deal