MONTREAL, July 3, 2014 /CNW Telbec/ - TransForce Inc. (TSX: TFI) (OTCQX:
TFIFF), a North American leader in the transportation and logistics
industry, today announced that a wholly-owned subsidiary of TransForce
has completed the acquisition of the entire share capital of Transport
America, Inc. ("Transport America"), an important provider of truckload
("TL") carriage and logistics services. Transport America was a
portfolio company of Minneapolis-based Goldner Hawn Johnson & Morrison
Founded in 1984 and headquartered in Eagan, Minnesota, Transport America
provides an integrated offering of dry-van TL transportation services
across the United States. It offers a wide array of short and long haul
freight carriage, expedited and dedicated shipping services, as well as
international and intermodal services through various partners.
Transport America's network includes 12 terminals located throughout
the United States and utilizes more than 2,000 staff and independent
contractors. Through its own fleet and independent contractors,
Transport America operates approximately 1,500 tractors and about 4,400
The purchase price represents a total enterprise value of approximately
US$310 million, including the assumption of Transport America's debt of
about US$150 million, which has been reimbursed at closing. TransForce
has financed the transaction through its existing credit facility,
which has been extended by one year to August 2017 and whose authorized
amount has been increased to $1,045 million.This acquisition is expected to generate annual total revenues of
approximately US$350 million.
"We are excited to conclude this important strategic acquisition which
provides TransForce with a critical mass, extensive geographic
footprint and longstanding relationships with blue chip customers. The
well-respected Transport America brand will be maintained, acting as
our growth platform in the highly-fragmented US truckload market. We
welcome Scott Arves, president and CEO of Transport America, his
management team and their dedicated staff to the TransForce family.
Together, we will focus on setting best practices to maximize
efficiencies and capture profitable growth opportunities, thus
generating a solid return on investment to the benefit of our
shareholders," said Alain BÉdard, Chairman, President and Chief
Executive Officer of TransForce.
TransForce Inc. is a North American leader in the transportation and
logistics industry operating across Canada and the United States
through its subsidiaries. TransForce creates value for shareholders by
identifying strategic acquisitions and managing a growing network of
wholly-owned, operating subsidiaries. Under the TransForce umbrella,
companies benefit from corporate financial and operational resources to
build their businesses and increase their efficiency. TransForce
companies service the following segments:
Package and Courier;
Truckload, which includes specialized truckload and dedicated services;
Specialized Services, which includes waste management, logistics
services and services to the energy sector.
TransForce Inc. is publicly traded on the Toronto Stock Exchange (TSX:
TFI) and the OTCQX marketplace in the U.S. (OTCQX: TFIFF). For more
information, visit http://www.transforcecompany.com.
Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of TransForce. These statements are
based on suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include, without
excluding other considerations, fluctuations in quarterly results,
evolution in customer demand for TransForce's products and services,
the impact of price pressures exerted by competitors, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.
SOURCE TransForce Inc.