Long Beach supply chain services firm UTi Worldwide has announced a deal to sell the company to DSV,a Danish logistics business.
The transaction is valued at $1.35 billion, according to Friday’s announcement from UTi Worldwide.
The company reported the sales price calculates to $7.10 a share, representing a 50 percent premium greater than UTI Worldwide’s stock price at the close of Thursday’s trading.
“For our clients and employees, the potential combination of our two businesses has a strong cultural fit, aligned strategy, and a complementary client base and geographic footprint,” UTi Worldwide Chief Executive Ed Feitzinger said in a statement.
UTi Worldwide’s sale to the Danish firm followed a restructuring effort in which the Long Beach company reported a simplification of its leadership and the elimination of several management positions.
The merger agreement is expected to close during the first quarter of 2016 and is subject to shareholder and regulatory approvals.
Shares of Uti Worldwide closed at $7.13 Friday on the NASDAQ.
Contact Andrew Edwards at 562-499-1274.
