Miami-based Ryder System Inc. said in a statement it will ‘carefully review and evaluate the indication of interest’ to determine what is in the best interest of its shareholders. PHOTO: RYDER SYSTEM

Activist investor HG Vora Capital Management LLC is offering to acquire Ryder System Inc. in a $4.4 billion deal that would take the fleet management and supply-chain operator private.

HG Vora owns a 9.9% stake in Ryder and said in a regulatory filing Thursday it is proposing to buy the rest of the transportation and logistics company’s outstanding shares at $86 a share, a 20% premium to its closing price Thursday.

Ryder’s shares, which fell as much as 25% from late March to mid-April amid growing inflation and other signs of weakness in the U.S. economy, rose more than 18% in trading Friday to $83.77 following a trading pause for volatility around the announcement of the acquisition proposal.

Miami-based Ryder said in a statement it will “carefully review and evaluate the indication of interest” to determine what is in the best interest of its shareholders.

Ryder’s stock traded close to $90 a share as recently as October 2021 but slipped back to as low as $63.11 a share, the closing price on April 8, as concerns about inflation and potential weakness in the U.S. weighed on investors.

Ryder, which has been undertaking an ambitious expansion of its supply-chain services business, earned a $519 million net profit last year, swinging from a $122.3 million loss in 2020 as the Covid-19 pandemic battered supply chains.

The company recently raised its guidance for the year, to a range of $13 to $14 adjusted earnings per share from $11 to $12 per share, after first-quarter revenues jumped 28% year-over-year to $2.85 billion.

HG Vora said it would fund the acquisition with capital from its own funds as well as lender commitments.

Ryder said Morgan Stanley & Co. is acting as financial adviser on the acquisition offer and Wachtell, Lipton, Rosen & Katz is acting as legal adviser.