trailer

Wabash National buying Supreme body builder

LAFAYETTE, IN - Wabash National is purchasing Supreme Industries -- the second-largest maker of truck bodies in the U.S. - as an answer to the growing e-commerce segment. The cash offer is valued at US $21 per share, which equates to an equity value of $364 million and enterprise value of $342 million. The company expects to realize at least $20 million in annual cost savings by 2021, largely through corporate and procurement expenses and operational savings. Supreme, founded in 1974, recorded $299 million in sales last year and has seven facilities across the country. (All figures are in US dollars.) The Wabash portfolio includes dry freight vans, refrigerated vans, liquid and dry bulk tank trailers, and platform trailers.

IN PRINT — Tanks a Lot: Leave some tanker spec’ing to experts

TORONTO, ON -- There used to be good money in the liquid bulk business. The required equipment is so specialized that it presented somewhat of a barrier to entry into the market. That's still the case, but there are more players in the game now, and competition is keeping rates at near-1980s levels. Fleets, both private and for-hire, are now trying to make up for the low rates by optimizing their trailer spec's to increase utilization and carrying capacity.