New Zealand firm buys Target Logistics
International and domestic freight forwarder Target Logistics said it reached an agreement to sell the company to Mainfreight Ltd. for $53.7 million in cash.
Under terms of the agreement, holders of Target Logistics' common stock will receive $2.50 in cash per share of common stock, representing a 36.6 percent increase over Target Logistics' closing price on Sept. 17, a 38.0 percent premium over the company's one-month average closing price and a 28.8 percent premium over the company's three-month average closing price.
Mainfreight is based in New Zealand and also has logistics operations in the United States, Australia and Asia. It had NZ$968 million in revenue in its latest fiscal year.
The acquisition of Carson, Calif.-based Target Logistics fits with Mainfreight’s international expansion strategy and grow its presence in the United States.
The deal is expected to be completed in the fourth quarter.