UTi Worldwide (UTIW) Stock Skyrockets on DSV Deal

The acquisition will cost $1.35B

By Karl Utermohlen, InvestorPlace Writer Oct 9, 2015, 4:23 pm EST October 9, 2015

UTi Worldwide (NASDAQ:UTIW) is skyrocketing Friday as the company is being acquired by DSV.

The Danish transport the company is buying the Long Beach, CA manufacturing company as part of a deal worth about $1.35 billion.

All outstanding shares of UTi Worldwide will be bought at $7.10 a share in cash by DSV as part of the agreement. The deal marks a 34% premium over UTIW’s 30-day weighted average trading price.

The deal is set to close between January 1, 2016 and March 31, 2016.

“For our clients and employees, the potential combination of our two businesses has a strong cultural fit, aligned strategy, and a complementary client base and geographic footprint,” UTi CEO Ed Feitzinger said in a statement.

UTIW stock is up 51.06% Friday.

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