Proficient aims to raise $215m by going public

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Proficient Auto Logistics is aiming to raise $215m from its initial public offering (IPO), according to its newly updated SEC registration statement.

The company previously hoped to raise $100m but has now upped the ante and intends to sell 14.33m shares of common stock at a proposed midpoint price of $15 per share to rake in the $215m.

NKP-Proficient Auto-5891

Proficient will only acquire all five logistics companies, or none at all, and the IPO and acquisitions are reliant on each other’s closing

The Delaware-based FVL trucking firm is seeking to combine with Delta Automotive Services, Deluxe Auto Carriers, Sierra Mountain Group, Proficient Auto Transport and Tribeca Automotive, following a recent trend of consolidation in the FVL sector.

The company said in the updated filing that it plans to use $180.4m of the IPO proceeds to pay the equity holders of the companies, with $3m used to pay associated expenses and the remaining amount for general corporate purposes including future acquisitions.

As of December 31, 2023, Proficient Transport had total operating revenue of $135.8m and net income of $7.2m, with a substantial operating portion of operating revenue coming from its four largest customer; GM, Glovis (the logistics arm of Hyundai and Kia), Ford and Mercedes-Benz.

The filing listed that Proficient will only acquire all five logistics companies, or none at all, and the IPO and acquisitions are reliant on each other’s closing. If successful, the combined group will continue to serve customers from large OEMs as well as dealers and rental and leasing firms and will operate 49 facilities throughout the US.

However, there could be a spanner in the works, as two of the companies, Tribeca Automotive and Delta Automotive Services, are in discussions to sell to unaffiliated third-party purchasers.

At Finished Vehicle Logistics North America 2024 there will be analysis and expert insight on the market drivers, disruptors, economic and geo-political factors shaping the forecasts for North American vehicle production and sales, including fragmentation and further consolidation. The conference will take place 21-23 May at Waterfront Beach Resort, Huntington Beach, California.