Glazer Capital Adds Pacer International (PACR) to Its Equity Portfolio

Paul Glazer‘s New-York based hedge fund, Glazer Capital has reported a new 7% passive stake in Pacer International, Inc. (NASDAQ:PACR) in a SEC filing. The stake amounts to some 2.7 million shares valued at approximately $23.5 million.

Pacer International, Inc. (NASDAQ:PACR)

Pacer International, Inc. (NASDAQ:PACR) is a major North American transportation and logistics services provider based in Dublin, Ohio. Its share price exhibited steady growth in the past 12 months, ranging from a low $4.29 to a high $9.23 and closing at $9.02 on Friday, March 7th. Analysts expect Pacer’s EPS to double with respect to last year’s earnings of $0.12 per share, the mean recommendation for the stock being ‘Hold’. The company trades at a P/E of 38.63 versus the industry average P/E of 19.30.

At the beginning of the year, XPO Logistics Inc (NYSE:XPO) agreed to buy Pacer International, Inc. (NASDAQ:PACR) for about $335 million in cash and stock. The deal is to be closed in the second quarter of 2014, its value offering an 8% premium over Pacer’s market value at the time of announcement, but only 1% given the company’s market value today.

Matthew Drapkin and Steven R. Becker‘s Becker Drapkin Management holds a 6.1% stake in Pacer International. Other significant shareholders of Pacer International are Peter Schliemann‘s Rutabaga Capital Management and Ric Dillon‘s Diamond Hill Capital holding 1.7 million shares and 1.3 million shares respectively.

Investments in the Healthcare industry represent the largest share (approximately 50%) of Glazer Capital’s equity portfolio. The largest stake is represented by Life Technologies Corp (NASDAQ:LIFE), in which the fund reported a $51 million stake (22% of the portfolio). It is followed by LSI Corp (NASDAQ:LSI), with 1.6 million shares and an aggregate value of around $17.9 million. Moreover, the fund recently revealed a stake of 1.56 million shares in Boulevard Acquisition Corp (NASDAQ:BLVDU), a couple of days after the company’s IPO.

Disclosure: none.

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