Jacksonville-based Proficient Auto Logistics, Inc. (NASDAQ:PAL) has completed the acquisition of Auto Transport Group, LC (ATG), a vehicle transportation service provider in the Mountain Western region of the United States. The transaction, which closed on Thursday, August 16, 2024, was announced in a recent 8-K filing with the Securities and Exchange Commission.
The deal involved Proficient Auto Logistics paying approximately $28.9 million in cash and issuing around 1.07 million shares of its common stock to the former members of ATG. Part of the stock, approximately 105,000 shares, is being held back to secure the sellers’ obligations related to post-closing adjustments and indemnifications.
The cash consideration for the acquisition was funded through Proficient Auto Logistics' existing cash reserves and borrowings from available credit facilities. The purchase price is subject to the usual post-closing adjustments.
In conjunction with the acquisition, a Registration Rights Agreement was executed, which obligates Proficient Auto Logistics to register the shares issued in the transaction for resale under the Securities Act of 1933. However, the company will not be required to file a registration statement during the lock-up period, which lasts nine months for half of the shares and twelve months for the remainder.
ATG operates with a fleet of 76 tractors and 76 trailers and specializes in vehicle transportation and shipping services. The acquisition is expected to expand Proficient Auto Logistics' operational footprint in the transportation services industry.
The 8-K filing also contains forward-looking statements, cautioning that future results could materially differ from current expectations due to various risks and uncertainties. These statements do not guarantee future performance and are subject to change.
This transaction marks a significant expansion for Proficient Auto Logistics, as it integrates ATG's services and assets into its existing operations. The company has not disclosed any other material relationships between the sellers and Proficient Auto Logistics or its affiliates beyond the transaction.
This article is based on a press release statement and SEC filings.
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