Delivery and logistics provider Dynamex Inc., which operates in the U.S. and Canada, has accepted a takeover offer from Greenbriar Equity Group LLC worth $238-million (U.S.). The deal trumps a mystery bidder's offer, which Desjardins "strongly suspects" came from TransForce Inc. .
Not only does the play make sense strategically for TransForce, analyst Benoit Poirier noted, but the firm also raised $144-million in November that it said was to be used for acquisitions.
Now that the mystery player has been removed, "we would not be surprised to see the first bidder come back with a sweetened bid," Mr. Poirier noted. Assuming that firm is TransForce, he thinks offering up more money would be worthwhile because 40 per cent of Dynamex's revenues come from Canada, taking out a competitor would reduce pricing pressure and the deal would expand TransForce's presence in the U.S.
TransForce also told Desjardins that Dynamex was a potential target this past summer.
Yet a higher bid would only re-raise the stakes. The mystery player already offered $23.50 per share, higher than Greenbriar's initial offer. However, should Dynamex accept a better bid, it will now have to pay almost $8-million in break fees to Greenbriar because the latest offer has been approved.
Dynamex specializes in delivering packages for the medical, office product and pharmaceutical segments.