Despite Board approval for entering into a definitive merger agreement with an affiliate of Veritas Capital, Cubic Corp. is considering a new, unsolicited bid proposal. Kaleris, a cloud-based transportation and asset management solutions provider, has teamed with Buckeye Mountain to deliver mobile computing and wireless networking services for rail and truck transportation providers, intermodal companies, and industrial and finished goods shippers. Electro-Motive Diesel Limited has extended its full-service contract with GB Railfreight.
Cubic recently received an unsolicited proposal from Singapore Technologies Engineering (STE) to acquire all of Cubic’s outstanding stock for $76 per share in cash, which would be immediately followed by the sale of Cubic’s CMPS (Cubic Mission and Performance Solutions) business to an affiliate of Blackstone Tactical Opportunities.
This follows the Feb. 7, 2021 approval by Cubic’s Board to enter into a definitive merger agreement with an affiliate of Veritas Capital, under which Veritas and Evergreen Coast Capital Corp., an affiliate of Elliott Investment Management L.P., will acquire Cubic for $70 per share in cash. According to Cubic, “the Veritas merger agreement remains in full force and effect, and the Board of Directors of Cubic has not withdrawn or modified its recommendation that the stockholders of Cubic vote in favor of the approval of the merger.” However, Cubic’s Board “has determined that the STE Proposal is or would reasonably be expected to lead to a superior proposal,” so it will “engage in discussions” with STE “to further evaluate the merits and risks of the proposed transaction relative to the pending transaction with Veritas and Evergreen.”
A strategic partnership with Buckeye Mountain will enable Kaleris “to pair industry-leading rail and truck yard management systems (YMS) with turnkey mobile solutions and wireless technologies to further digitize and automate logistics operations and inventory workflows,” the company reported.
“Our customers rely on Kaleris for mission-critical yard management solutions, and this partnership increases our ability to digitize and automate important workflow tasks where and when the work is completed,” Kaleris CEO Kirk Knauff said.
“Our unique expertise in industrial-grade mobile solutions and wireless technologies will help Kaleris increase customer value and further differentiate its industry-leading rail and truck yard management systems,” Buckeye Mountain Principal Greg Dunnell added.
Progress Rail/GB Railfreight
GB Railfreight (GBRf), U.K., and Electro-Motive Diesel Limited (EMDL), a British legal entity of Progress Rail, a Caterpillar Company, have signed a contract extension to the full-service provision arrangements that have been in place since 2012.
The new contract extends the size of the GBRf fleet supported by Progress Rail. It also expands repair capacity at both the Doncaster and Peterborough depots and increases the number of field service engineers. Cementing further years of support, this contract demonstrates GBRf’s faith in Progress Rail’s technical capability and excellent service standards, which have delivered industry-leading asset utilization to date. This deal secures a long-term future for both businesses in the ever-growing rail freight market in the United Kingdom.”
GBRf Asset Director David Golding said, “We are pleased to announce this contract extension with EMDL, a well-established and reliable partner for our business. This is a significant enhancement, which will enable GBRf to expand its operations, whilst also providing extra field service and engineering capacity the business needs.”
EMD Sales Director Jon Caen added, “We are delighted to be working with GB Railfreight on this exciting project. This contract extension solidifies a successful relationship and provides both companies with a long-term future. Supporting fleet maintenance digitalisation, the fitment of PR UptimeTM across the Class 66 and 69 fleets brings the most advanced analytics technology available.”