WOODBRIDGE, ON — Titanium Transportation Group Inc. announced it has received the approval of its board of directors to finalize definitive agreements to acquire ProNorth Transportation.

Under the terms of the agreement, expected to close on Dec. 1, Titanium will acquire all of the stock of ProNorth for $5.8 million in cash and 1,750,000 common shares.

Upon closing, ProNorth is expected to have approximately $1.7 million of cash on hand. The remaining $4.1 million of the cash consideration will be funded using Titanium’s existing credit facilities. The shares of Titanium to be issued in connection with the transaction will be subject to a two-year escrow arrangement.

ProNorth is an asset-based transportation company based in North Bay, ON, with additional terminals in Mississauga and Sudbury, ON, and facilities in Timmins, ON.

The company provides truckload van shipping services to over 250 customers, with 110 power units, 280 trailers and 150 employees and independent owner operators, according to Titanium. The acquisition of ProNorth will increase Titanium’s fleet size by over 30 percent, to a total of over 450 power units and over 1,200 trailers.

Titanium will also be purchasing certain real estate used in the operation of ProNorth for the aggregate purchase price of $2.5 million.

“Titanium has a proven track record of acquiring asset-based transportation companies, extracting synergies, and implementing its leading edge technology,” said Ted Daniel, CEO of Titanium. “This acquisition expands Titanium’s geographic profile in Northern Ontario, allows for synergies with Titanium’s existing lanes and Bracebridge terminal, and creates a platform for growth in the region. In addition, ProNorth’s dry van business is highly complementary to Titanium’s existing flatbed business in Northern Ontario.”

Titanium provides truckload, dedicated, and cross-border trucking services, freight logistics, and warehousing and distribution to over 800 customers.