- Covenant Transportation (CVTI +2.4%) acquires Landair, a supplier of transportation and logistics inventory management services.
- Under the terms of the agreement, Covenant paid $83M, as well as refinanced debt of $15.5M.
- CVTI's pro forma net debt-to-EBITDA is expected to be ~1.9x-2.0x.
- The transaction is expected to add ~$0.04-$0.08 per diluted share to CVTI’s for Q2 and $0.16 to $0.20 for FY19.
- The company reaffirms previous Q2 expectation of diluted EPS of ~ $0.45-$0.53, despite impact of the acquisition-related expenses.