TransForce Buys US Trucking Firm for $310M
MONTREAL, QC— TransForce has a $310-million US deal to buy Minnesota-based Transport America, Inc., a truckload carrier in the United States.
"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,” said Alain Bédard, Chairman, President and CEO of TransForce.
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 about 1,500 tractors and 4,400 trailers.
“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," Bédard said.
The acquisition is expected to make about US$350 million per year in revenues for TransForce and will expand its US operations.
Founded in 1984, Transport America provides dry-van truckload 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.
The deal is expected to close at the end of June.
The company will continue to be branded as Transport America.