Third-party logistics provider GENCO Distribution is buying ATC Technology, a $485 million high-tech and automotive logistics company, for $512.6 million.
The merger will form one of the largest reverse logistics operators in North America, said Macquarie Capital, a financial advisor to the companies.
GENCO, based in Pittsburgh, claims to handle more than $1.5 billion in freight a year.
ATC's operations will be merged into GENCO, a privately owned logistics operator with about $950 million in annual sales, the companies said Monday.
The purchase price represents a 43.4 percent premium over the closing value of ATC's stock July 16. The stock shot up 39 percent Monday to more than $24.
ATC's shareholders must approve the deal, which is expected to close in the fourth quarter. The agreement allows ATC to pursue alternative offers until Aug. 17.
Downer's Grove, Ill.-based ATC operates divisions providing logistics services for electronics and automotive firms and for drivetrain product suppliers.
"ATC's logistics capabilities will become a centerpiece of the combined business for servicing the consumer electronics marketplace, and GENCO will continue to build the drivetrain business," said Todd R. Peters, ATC's president and CEO.
The logistics division of ATC reported $345.3 million in revenue last year, when it increased its profit 13.9 percent to $64 million. The company's drivetrain division lost $37 million in 2009, as sales decreased 21.1 percent to $139.7 million.
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