FVL North America 2024: $215M IPO Fuels Acquisition Spree, Impacting Sector Consolidation
The 'Finished Vehicle Logistics North America 2024' conference is set for 21-23 May at Waterfront Beach Resort, Huntington Beach, California. It aims to discuss market trends and consolidation in the FVL sector. Meanwhile, two unnamed companies are in talks to sell to unaffiliated buyers, potentially impacting acquisition plans.
The company behind the acquisition plans intends to raise $215m through an IPO, initially aiming for $100m. It aims to sell 14.33m shares at a midpoint price of $15 per share. Of the IPO proceeds, $180.4m will go towards paying equity holders of the acquired companies, with $3m for associated expenses, and the rest for general corporate purposes and future acquisitions.
The proposed combined group will operate 49 facilities across the US, serving large OEMs, dealers, and rental and leasing firms. The acquisition of five logistics companies is conditional on all five deals closing simultaneously. The companies in the acquisition pipeline include Delta Automotive Services, Deluxe Auto Carriers, Sierra Mountain Group, Proficient Auto Transport, and Tribeca Automotive. Proficient Transport, one of the target companies, reported total operating revenue of $135.8m and net income of $7.2m as of December 31, 2023.
The success of the IPO and the acquisition of five logistics companies is interdependent. If all goes as planned, the combined group will significantly expand its footprint and services in the US finished vehicle logistics sector.
