MONTREAL, Sept. 25, 2013 /CNW Telbec/ - TransForce Inc. ("TransForce") (TSX: TFI) (OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced that it has submitted a proposal to the board of directors of Vitran Corporation Inc. ("Vitran") (Nasdaq:VTNC) (TSX:VTN) to acquire all of the issued and outstanding shares of Vitran not already owned by TransForce at a price of USD$4.50 per share in cash (the "Proposal").
The Proposal was made in a letter sent today to Vitran's Chairman of the Board of Directors. TransForce made the Proposal with the objective of entering into negotiations with Vitran's Board and obtaining its support for the Proposal. The Proposal is conditional upon the sale of the US LTL business announced on September 23, 2013.
An important aspect of the Proposal is that Vitran would remain a standalone business within the TransForce group of companies and TransForce is very keen that the existing management team remain with Vitran going forward to continue to execute their business plan.
TransForce currently controls 9.51% of the outstanding shares of Vitran and is in the process of reviewing its alternatives related to the Proposal, including, if the board of directors of Vitran do not engage in negotiations taking the Proposal directly to shareholders.
A formal offer has not been made to shareholders and TransForce is not legally obligated to engage in any transaction noted above or on any other terms, and no assurance can be given that any transaction will be undertaken.
TransForce has retained National Bank Financial Markets as its financial adviser and Heenan Blaikie LLP as legal adviser.
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 services to the energy sector, waste management, logistics and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX) 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. No assurance can be given that any events anticipated by the forward-looking information or statements will transpire or occur, or if any of them do so, what benefits that TransForce will derive therefrom. In particular, no assurance can be given as to whether the proposed acquisition of Vitran Corporation Inc. will be completed.
SOURCE: TRANSFORCE INC.
For further information:
Chairman, President and CEO