TRANSPORTATION

ButcherJoseph Advised Smith Transport, Inc. on Its Sale to Heartland Express Inc.

ButcherJoseph & Co. | June 09, 2022

ButcherJoseph Advised Smith Transport
ButcherJoseph & Co. (“ButcherJoseph”) advised Smith Transport, Inc. (“Smith” or the “Company”), an asset-based truckload carrier headquartered in Roaring Spring, Pennsylvania, on its sale to Heartland Express, Inc. (NASDAQ: HTLD) (“Heartland”).  The transaction closed in June of 2022.

Heartland acquired 100% of the equity of Smith and related companies for a cash-free, debt-free enterprise value of approximately $170 million. Smith was an S corporation for tax purposes, and the transaction included an election under Section 338(h)(10) of the Internal Revenue Code, resulting in tax deduction benefits over periods of one to fifteen years. The purchase agreement contains customary terms and conditions. The Roaring Spring, Pennsylvania property was acquired from its owners in a separate transaction for $14 million in cash and includes both the trucking terminal and 375,000 square feet of warehouse space that is leased to tenants.

Barry Smith, Smith’s Founder and Chairman Emeritus, added, Building Smith Transport has been my life’s work, and I could not have found a better home than Heartland for the Smith family. They offer us long-term stability and the opportunity to grow as part of an industry leader, while retaining our own culture and identity. I look forward to being part of the team to ensure a smooth transition.

 “As an employee-owned company, our goal was to find the best value and the best home for our people for years to come. We had long thought Heartland was a great fit because of their regional presence, respect for professional drivers, and unsurpassed customer service that mirrors our own philosophies. With the ability to pay cash and invest in our headquarters, and the desire for Smith to remain an independent brand operated by the same people, the choice was clear. I’m excited to work with Mike Gerdin and the Heartland team to make this a success for everyone.”

-Todd Smith, Smith’s President

ButcherJoseph Managing Partner Joe Strycharz commented, “We’re delighted to have been able to advise Smith Transport in a transaction that met the Company’s strategic objective to remain an independent brand operated by the same people who helped build the company and its culture. The team conducted a thorough process to identify the right buyer and negotiate terms that met the needs of the employee stakeholders involved. Like Heartland, Smith is a dynamic company driven by a commitment to excellence.  We couldn’t be happier with the outcome and look forward to the continued growth and future success of both Smith and Heartland.”

About Smith Transport
Founded in 1982, Smith Transport, Inc. is an asset-based truckload carrier headquartered in Roaring Spring, Pennsylvania, with terminal locations in Pennsylvania, Georgia, and Indiana. Smith primarily provides dry van transportation and other specialized services in the eastern United States. Smith’s customer base includes many Fortune 500 companies including expedited transportation integrators, retailers, beverage manufacturers, and home supply companies, several of whom have been customers for over 20 years. Smith operates a fleet of approximately 850 company tractors, with an average age of less than three years, and approximately 2,000 dry van trailers. The modern fleet is not expected to require any out of cycle investment.

About Heartland Express
Heartland Express, Inc. is an irregular route truckload carrier based in North Liberty, Iowa, serving customers with shipping lanes throughout the United States. Heartland focuses on medium to short haul regional freight, offering shippers industry-leading on-time service so they can achieve their strategic goals for their customers. Since its initial public offering in 1986, Heartland has grown from approximately $20 million in revenue to one of North America’s largest, most profitable, and best capitalized truckload carriers. Heartland has been recognized 18 times by Forbes Magazine as one of the Top 200 Best Small Companies in America, 17 times as one of the Best Truckload Carriers in America by Logistics Management Magazine, and as one of America’s Most Trusted Companies by Newsweek Magazine in 2022.

About ButcherJoseph & Co.
ButcherJoseph & Co. is a boutique investment banking firm specializing in ESOPs, mergers and acquisitions, private debt & capital sourcing and valuation advisory services for middle market companies. Its industry recognized team of professionals has executed 200+ transactions exceeding $15 billion in total value. ButcherJoseph is headquartered in St. Louis with a presence in Washington, DC and offices in Chicago, Charlotte, Scottsdale, and Nashville.

Advisors
Scudder Law Firm, P.C., L.L.O. served as merger and acquisition transaction and legal advisor to Heartland, while Utz & Lattan, LLC served as Heartland’s special ESOP counsel. Morgan, Lewis & Bockius LLP served as transaction counsel and McGuireWoods served as special counsel to Smith. Moore & Van Allen PLLC served as counsel to the ESOP trustee.

Spotlight

How can a single trade deal stir up global economic policy and politics? The Trans-Pacific Partnership, the largest trade agreement in history, has created its fair share of controversy over the past year. But for all the hubbub, there's still a lot of uncertainty about its impact on global trade. That's because the leviathan agreement gets into a lot of areas, and in many ways its impact on areas like intellectual property and services trade might be greater than the actual effects on imports and exports. Still, many businesses are interested in finding out just what the TPP will mean for them, so we've put together this handy infographic that outlines some of the basic facts about the TPP and how it could affect supply chains worldwide.


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TRANSPORTATION

ENEL LAUNCHES NEW GLOBAL E-MOBILITY BUSINESS, ENEL X WAY

Enel | June 28, 2022

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PROCUREMENT AND SOURCING

Emergent Cold Latin America Acquires Distribution Facility Located in Recife, Brazil

Emergent Cold LatAm | July 07, 2022

Emergent Cold Latin America (Emergent Cold LatAm), the fastest-growing cold storage logistics operator in Latin America, announced today the acquisition of a modern distribution facility located in Recife, Brazil. This acquisition marks Emergent Cold LatAm’s expansion of its operations into the northeast region of Brazil.The new Emergent Cold LatAm site has a building area of almost 20,000 square meters, with 19,900 pallet positions of storage space. It is well-located within the city of Recife, which is one of Brazil’s largest cities and the most important commercial hub in the northeast region. This acquisition represents Emergent Cold LatAm’s latest investment in Brazil. In November 2021, the company entered Brazil’s cold logistics market with its acquisition of Martini Meat. At the same time, Emergent Cold LatAm purchased DMX Logística, a leading transportation business supporting Brazil’s protein industry. With the new Recife location, Emergent Cold LatAm now has cold storage operations in four states across Brazil: Paraná, Santa Catarina, Rio Grande do Sul, and Pernambuco. “This latest acquisition allows us to provide customers will fully-integrated solutions across a greater area of Brazil, including transportation, storage and other value-added services, I’m pleased to add this high-quality facility to our growing Brazil network.” -Evandro Calanca, Managing Director of Emergent Cold Brazil. 44 Capital Finanças Corporativas acted as financial advisor and Lefosse Advogados acted as legal advisor to Emergent Cold LatAm. About Emergent Cold LatAm: Emergent Cold LatAm (www.emergentcoldlatam.com) is building a cold storage network of the highest quality, to provide integrated and comprehensive temperature-controlled logistic solutions to customers all over Latin America. The company was founded to cover the need for modern cold chain solutions in the market, and to meet the increasing demand from domestic and global customers. With this acquisition Emergent Cold LatAm now operates in 18 cold storage facilities, with more than 500 trucks and 3 facilities now under construction, to complete a total of 9 countries across Latin America.

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TRANSPORTATION

J.B. Hunt, Waymo Add Wayfair to Autonomous Trucking Pilot in Texas

J.B. Hunt Transport Services Inc | June 29, 2022

J.B. Hunt Transport Services Inc. (NASDAQ: JBHT), one of the largest supply chain solutions providers in North America, and Waymo, the leading autonomous driving technology developer, announced the latest development in their collaboration on autonomous trucking technology will include a pilot delivering goods for J.B. Hunt customer Wayfair, one of the world’s largest destinations for the home. The latest pilot will span six-plus weeks during July and August and take place along the I-45 corridor between Houston and Dallas, the location of J.B. Hunt and Waymo’s original pilot nearly one year ago. It will be the first in-depth transportation of home furnishings retail freight between J.B. 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Hunt and their willingness to collaborate with us on this autonomous commercial vehicle test as a part of our overall strategy to evolve our logistics strategies and end-to-end supply chain solutions.” -Sean Halligan, Wayfair’s chief global supply chain officer. As part of their long-term collaboration, J.B. Hunt and Waymo are exploring technology integration opportunities with J.B. Hunt 360. For example, the J.B. Hunt 360box® drop-and-hook freight program that includes more than 12,000 available trailers has the potential to provide a near-term, efficient solution for shippers that would make autonomous driving technology available in the digital freight marketplace for the first time. Waymo’s impressive experience building autonomous driving technology spans more than a decade, having driven over 20 million miles on public roads and 20 billion miles in simulation. J.B. Hunt operates one of the largest company-owned fleets in the U.S. complemented by an industry-leading multimodal freight marketplace in J.B. Hunt 360. Driven by its talented workforce, industry-leading technology and capacity-driven solutions, J.B. Hunt continues to advance its mission to create the most efficient transportation network in North America. About J.B. Hunt J.B. Hunt Transport Services Inc., an S&P 500 company, provides innovative supply chain solutions for a variety of customers throughout North America. Utilizing an integrated, multimodal approach, the company applies technology-driven methods to create the best solution for each customer, adding efficiency, flexibility, and value to their operations. J.B. Hunt services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, final mile, and more. J.B. 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For more: www.waymo.com.

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LOGISTICS

Universal Logistics Holdings, Inc. Announces Preliminary Results of its Self-Tender Offer

Universal Logistics Holdings, Inc | June 20, 2022

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Spotlight

How can a single trade deal stir up global economic policy and politics? The Trans-Pacific Partnership, the largest trade agreement in history, has created its fair share of controversy over the past year. But for all the hubbub, there's still a lot of uncertainty about its impact on global trade. That's because the leviathan agreement gets into a lot of areas, and in many ways its impact on areas like intellectual property and services trade might be greater than the actual effects on imports and exports. Still, many businesses are interested in finding out just what the TPP will mean for them, so we've put together this handy infographic that outlines some of the basic facts about the TPP and how it could affect supply chains worldwide.

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