Transaction to provide TransForce with critical mass in the US Truckload
Monday June 2, 2014 at 9:00 AM, Eastern time
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MONTREAL, QC and EAGAN, MN, June 2, 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 entered into an agreement
with Goldner Hawn Johnson & Morrison Incorporated ("GHJ&M") to acquire
the entire share capital of its portfolio company, Transport America,
Inc. ("Transport America"), an important provider of truckload ("TL")
carriage and logistics services.
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 transaction is subject to customary closing conditions and should
close near the end of June 2014. 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.
TransForce will finance the transaction through its existing credit
facility, and will continue to maintain a strong balance sheet and
financial flexibility post-closing. This acquisition is expected to
generate annual total revenues of approximately US$350 million.
"This acquisition will immediately provide TransForce with a critical
mass in the highly-fragmented TL sector in the United States and we
stand to benefit from Transport America's extensive geographic
footprint and longstanding relationships with blue chip customers.
Transport America is an efficient, well-managed company that generates
solid operating margins. We expect this transaction to be immediately
accretive to earnings and to provide a sound return on investment to
the benefit of our shareholders," said Alain Bédard, Chairman,
President and Chief Executive Officer of TransForce.
"The acquisition meets all of the criteria we established as we explored
ownership options, and we could not be more pleased," said Scott C.
Arves, Transport America's president and CEO. "Together, with shared
resources and stronger access to capital to support growth, we will be
better positioned to serve customers and provide increased
opportunities for our employees."
The company will continue to be branded as Transport America and is
excited to be the platform for growth for TransForce in the US
RBC Capital Markets is acting as exclusive financial advisor to
TransForce on the transaction.
Bank of America has acted as exclusive advisor to Transport America on
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.
For further information:
Chairman, President and CEO