M&A Showed Modest Activity Last Week

​Last week, two mid-sized trucking firms, Kelsey Trail Trucking and Landair Holdings, merged with larger counterparts Big Freight Systems and Covenant Transportation, respectively. Xplore Technologies, the rugged device maker, was bought out by Zebra Technologies. Juniper Pharmaceuticals was acquired by healthcare solutions company Catalent. Cummins continued its electric transformation by purchasing Efficient Drivetrains. Finally, The Gordian Group, a construction tech frim, was acquired by holding-company Fortive.

• Cummins, Inc. (NYSE: CMI), a Fortune 500 corporation that designs, manufactures, and distributes engine, air filtration, and power generation products, announced the acquisition of Efficient Drivetrains, Inc., on Monday. Silicon Valley-based Efficient Drivetrains specializes in the production of powertrain systems for plug-in-hybrid and fully electric commercial vehicles. Cummins, well known for its diesel engine solutions, has been adapting quickly to the times. Its acquisition of Efficient Drivetrains is the third in a string of recent purchases of electric vehicle companies, signaling a shift in focus for the pro-diesel company. Deal consideration was not disclosed.

• Fortive (NYSE: FTV) announced Monday that it will buy construction software company Gordian for $775 million from private equity firm Warburg Pincus. Gordian’s suite of software and data solutions provide insights to a wide variety of clients, including architects, engineers, and facility owners. Its software-as-a-service (SaaS) platform is designed to easily manage the essential functions of the construction procurement process.

• In a deal announced last Thursday, Zebra Technologies (NASDAQ: ZBRA) is set to acquire Xplore Technologies (NASDAQ: XPLR) for $6.00 per share, or $90 million in total. Xplore is a maker of ultra-rugged tablets, 2-in-1 laptops, and a range of performance-matched accessories. Xplore’s products are designed to withstand extreme conditions across diverse markets, including manufacturing, healthcare, utility, government, and public safety. Zebra’s traditional business line is the manufacture and sale of marking, tracking, and computer printing technologies, primarily for barcode labels and receipt printing. However, in 2014, Zebra acquired Motorola Solutions’ enterprise business, allowing it to offer rugged computers and tablets and to expand into data collection and the internet of things (IoT).

• Juniper Pharmaceuticals (NASDAQ: JNP) reached a definitive agreement to be acquired by Catalent (NYSE: CTLT) for $139.6 million last Tuesday. Juniper is a provider of pharmaceutical and therapeutic services intended to improve health quality. The company's pharmaceutical and therapeutic services include pharmaceutical development, clinical trial manufacturing, and advanced analytical and consulting services and focus on developing therapeutics that address unmet medical needs in women's health, enabling customers to receive quality treatment for their medical conditions. The acquisition will expand and strengthen Catalent's offerings in formulation development, bioavailability solutions, and clinical-scale oral dose manufacturing, and will complement its integrated global clinical and commercial supply network.

• Big Freight Systems, a Canadian freight management company, is set to merge with Kelsey Trail Trucking, another Canadian trucking firm. Combined, the two firms will operate roughly 750 tractors and trailers. Kelsey Trail will become a division of Big Freight, which is a unit of specialized flatbed hauler Daseke (NASDAQ: DSKE). Merging with Big Freight will allow Kelsey Trail to better support their team and scale their trucking business. The merger will give Big Freight access to an additional 80 tractors and a handful of 53-foot trailers. Fifty of Kelsey Trail’s long-haul tractors are used to haul timber out of British Columbia. Big Freight will also have access to Kelsey Trail’s 42,000-square-foot facility north of Toronto. Deal consideration was not disclosed.

• Covenant Transportation Group (NASDAQ: CVTI) completed its $83 million acquisition of Landair Holdings, a Tennessee-based logistics and freight transportation company. The purchase will add 430 trucks and 900 trailers to Covenant's fleet of 2,559 tractors and 7,134 trailers. The deal will also add new warehousing and warehouse services for multiple shippers. "We pursued Landair because of their proven record of growth and profitability in the dedicated and 3PL (third party logistics) markets, their talented management team led by John Tweed, and the quality and integrity of their culture represented by their co-founder, Scott Niswonger," said Convenant CEO David Parker.