One heavyweight of Indiana manufacturing has announced an agreement to buy another. Terms of the deal call for Lafayette-based Wabash National Corp. (NYSE: WNC) to acquire Goshen-based Supreme Industries Inc. (NYSEMKT: STS) for $21 per share, or $364 million in equity value.
Wabash National bills itself as North America’s leading producer of semi-trailers and liquid transportation systems and Supreme is considered the second-largest truck body manufacturer in the U.S.
Wabash National Chief Executive Officer Dick Giromini says "Wabash National has been closely monitoring the transportation landscape as the growth of e- commerce has continued to change the logistics model. We formally entered the final mile space in 2015 with the launch of our dry and refrigerated truck bodies, and we have been aggressively growing our presence and product offering over the past two years. This acquisition supports these efforts and accelerates our objective to transform our business into a more diversified industrial manufacturer."
Wabash National says it expects the deal to save the combined operations $20 million or more each year by 2021, mainly through synergies related to corporate, procurement and operational efficiencies.
Supreme Industries CEO Mark Weber says "this is an exciting day for Supreme. Combining with Wabash will enhance our ability to innovate more quickly and create more value for customers. We found a cultural fit with Wabash National. Because of their commitment to safety, innovation and customer relationships, I’m confident joining the Wabash National family will benefit our employees, customers and distributors."
The acquisition still needs to receive regulatory approval and it is expected to close by the end of the year.