Covenant Logistics Group, Inc. acquired Lew Thompson & Son Trucking, Inc. for approximately $130 million.
April 26, 2023
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Covenant Logistics Group, Inc. (NasdaqGS:CVLG) acquired Lew Thompson & Son Trucking, Inc. for approximately $130 million on April 26, 2023. The transaction has an enterprise value of approximately $100 million plus an earnout of up to $30 million depending on the results achieved by the business over the three following calendar years. The closing price represented approximately 5.2 times estimated adjusted EBITDA of the acquired companies and was funded by cash on hand of approximately $45 million and approximately $55 million of borrowing?s from the Company?s ABL credit facility. Following the transaction, Covenant?s pro-forma net indebtedness is expected to be approximately $165 million. For 2022, Lew Thompson & Son Trucking generated approximately $64 million in revenue.
Covenant Logistics Group, Inc. (NasdaqGS:CVLG) completed the acquisition of Lew Thompson & Son Trucking, Inc. on April 26, 2023. The total purchase, including any earnout achieved, is expected to range from $109.9 million to $129.9 million depending on the results achieved by LTST. Gregory C. Lawhon of Scudder Law Firm, PC LLO acted as legal advisor to Lew Thompson & Son Trucking, Inc. and W. Todd Metzger of Scopelitis, Garvin, Light, Hanson & Feary PLC acted as legal advisor to Covenant Logistics Group, Inc.
Covenant Logistics Group, Inc., through its subsidiaries, offers a portfolio of transportation and logistics services to customers throughout the United States. The Companyâs primary services include asset-based expedited and dedicated truckload capacity, as well as asset-light warehousing, transportation management and freight brokerage capability. Its asset-based transportation services include two segments: Expedited and Dedicated. The Expedited segment primarily provides truckload services to customers. The Dedicated segment provides customers with committed truckload capacity over contracted periods. The Managed Freight segment includes its brokerage services and transportation management services (TMS). The Warehousing segment provides day-to-day warehouse management services for customers who have chosen to outsource this function. It also provides shuttle and switching services related to shuttling containers and trailers in or around freight yards and to/from warehouses.
COVENANT LOGISTICS GROUP, INC. 
