HG Vora’s offer of $86 a share comes after stock price sagged despite strong first-quarter earnings
Ryder’s shares, which fell as much as 25% from late March to mid-April amid growing inflation and other signs of weakness in the US economy, rose more than 18% in trading Friday to $83.77 following a trading pause for volatility around the announcement of the acquisition proposal.
Miami-based Ryder said in a statement it will “carefully review and evaluate the indication of interest” to determine what is in the best interest of its shareholders.
Ryder’s stock traded close to $90 a share as recently as October 2021 but slipped back to as low as $63.11 a share, the closing price on April 8, as concerns about inflation and potential weakness in the US weighed on investors.
Ryder, which has been undertaking an ambitious expansion of its supply-chain services business, earned a $519 million net profit last year, swinging from a $122.3 million loss in 2020 as the Covid-19 pandemic battered supply chains.
The company recently raised its guidance for the year, to a range of $13 to $14 adjusted earnings per share from $11 to $12 per share, after first-quarter revenues jumped 28% year-over-year to $2.85 billion.
HG Vora said it would fund the acquisition with capital from its own funds as well as lender commitments.
Ryder said Morgan Stanley & Co. is acting as financial adviser on the acquisition offer and Wachtell, Lipton, Rosen & Katz is acting as legal adviser.
Write to Lydia O’Neal at [email protected]
Credit: www.wsj.com /