Acquisition further enhances TransForce's presence in the same-day North American package and courier market
MONTREAL, Jan. 17, 2013 /CNW Telbec/ - TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, is pleased to announce that it has entered into a definitive agreement and plan of merger to acquire all the shares of Velocity Express ("Velocity") and its subsidiaries.
Headquartered in Stafford, Texas, Velocity operates a network of more than 80 locations across the United States and Western Canada, employing a combined total of approximately 2,600 staff and independent contractors. Velocity is an important provider of customized, same-day regional delivery solutions, offering an extended range of services in delivering packages of any size.
The transaction is expected to generate annual revenues of approximately $160 million for TransForce and should close by the end of January 2013.
"The acquisition of Velocity further enhances TransForce's density in the same-day North American package and courier market and reflects our disciplined and selective approach in building our network. A trusted provider of customized, same-day regional delivery services in the United States for nearly 20 years, and a well-established player in Western Canada. The transaction will be accretive for TransForce and will provide a sound 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, 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 services to the energy sector, waste management, logistics and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). 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