TransForce Gets Green Light in $136M Takeover of Vitran
TORONTO, ON — TransForce deal to buy less-than-truckload transportation company, Vitran, was approved under the Competition Act.
Under the deal, which is valued at US$136 million, including Vitran’s US$29 million debt, TransForce will acquire all Vitran shares that it does not already own.
"The acquisition of Vitran will further enhance our density in the Canadian LTL market and provide synergies going forward. Vitran will remain a standalone entity, under the leadership of Tony Trichilo, within the TransForce group of companies,” said Alain Bédard, chairman, president and CEO of TransForce.
“We are looking forward to leveraging the strengths of the two companies to the benefit of our customers and shareholders. I would like to welcome all Vitran employees and management to the TransForce team," Bédard said.
Montreal-based TransForce, which ranks first in Today’s Trucking’s top 100 fleets, originally bid US$4.50 per share for Vitran, but raised the offer to US $6.50 per share in cash in order to outbid Manitoulin Transport, which offered US $6.00 per share.
Manitoulin got $4-million as a termination fee under the terms of its agreement with Vitran.