HG Vora offers Ryder a $4.4 billion acquisition deal
HG Vora Capital Management, an activist investor, is eyeing the purchase of fleet management and supply chain operator Ryder System, the Wall Street Journal reported on Friday (May 13).
HG Vora already owns a 9.9% stake in the company, and the proposed $4.4 billion deal would privatize Ryder. In a regulation submission Last week, HG Vora said it would buy the remainder of the company’s outstanding shares at a price of $86 per share.
Ryder shares fell as much as 25% from late March through mid-April on inflation and various weaknesses in the U.S. economy. However, at the time of the takeover proposal, the company’s shares were up 18% after a trading pause due to volatility.
Ryder said in a Explanation It plans to consider HG Vora’s interest and decide on next steps based on the best solution for shareholders. HG Vora said it will fund the acquisition with its own funds along with lender covenants.
Ryder has undergone an “ambitious” expansion of its supply chain services business, the report said.
PYMNTS wrote that Ryder recently began working with InsurTech REIN to introduce an embedded insurance program for its commercial vehicle sales customers, allowing buyers to consider REIN insurance when purchasing trucks.
See also: Ryder creates one-stop shop for buying and insuring used commercial vehicles
This goes hand in hand with other services already offered, including financing, warranty and pre-paid preventive maintenance. The report found that users have historically found it difficult to get insurance for their used commercial vehicles.
Eugene Tangney, Ryder’s vice president of used vehicle sales, told PYMNTS that the insurance options are important because of the volume of new buyers entering the truck market. Additionally, pandemic-related supply chain challenges have led to people starting new businesses who now need some help getting used to the business.