Arkansas-based truckload carrier, USA Truck, has been acquired by a group of its current and former leaders from Danish freight forwarder DSV.
Financial terms of the transaction, which closed on Friday, were not disclosed.
The group includes current CEO George Henry and Zachary King, its former chief financial officer. Henry will continue to lead the day-to-day operations, with King stepping back in as the acting CFO. James Reed, former USA Truck CEO, is part of the group and will act in an advisory capacity.
Reed is currently the chairman of autonomous trucking company Kodiak AI and is an operating partner at private equity firm Banner Capital.
The three acquired USA Truck under an Arkansas-based entity called UTAC, LLC. The change to private domestic ownership will provide the company with additional flexibility to pursue growth.
“I want to start by expressing my sincere gratitude to DSV for their engagement since the acquisition of DB Schenker and unwavering support throughout this process,” Henry said in a news release. “The extensive knowledge and global supply chain insights gained under two of the world’s leading freight forwarders are now a permanent part of our operational DNA.”
DSV announced in October that it was shopping USA Truck, which it picked up when it acquired DB Schenker. The Danish forwarder said the asset-based operation no longer fit with its mostly asset-light offering. (Schenker acquired USA Truck for $435 million in 2022.)
The Schenker acquisition capped a turnaround at USA Truck. It was operating at a loss during the 2019 freight recession and early on in the pandemic. The company decided to cull the fleet by 10%, which helped improve asset utilization and reduce its reliance on the spot market.
The carrier returned to profitability by the back half of 2020. It posted an 87% adjusted operating ratio in its TL segment in the 2022 first quarter (the last period reported before the transaction was announced). It also reduced debt leverage from more than 4 times adjusted EBITDA to 1.7 times.
The carrier currently operates a fleet of 1,800 trucks and 6,000 trailers. It also touts an expansive logistics offering.
“To our phenomenal employees and customers, who have been steadfast partners throughout this journey, I am eternally indebted,” said Henry. “Welcome home, USA Truck!”
