Analyst Note| Matthew Young, CFA |
Private equity firm The Jordan Company struck an agreement to acquire narrow-moat truck brokerage specialist Echo Global Logistics for $48.25 per share in cash; the transaction will make Echo a privately held entity. Echo’s board of directors unanimously approved the offer. In short, we are raising our fair value estimate to roughly $48 per share to reflect TJC’s offer for all outstanding shares--our previous $28 DCF-derived fair value estimate reflects our take on Echo’s stand-alone prospects. The deal is slated to close in the fourth quarter. We note that TJC’s portfolio companies currently include several other smaller transportation management and freight brokerage entities.