BOLTON, Ont. – After a year of reducing its debt and improving its balance sheet, Titanium Transportation is in a position to potentially double its size through a “transformational” acquisition.
Ted Daniel, president and CEO of Titanium, told analysts on a conference call this week to discuss Q4 results that the company could buy a fleet of up to 500 trucks.
“We could buy another company with 500 trucks and technically double in size,” Daniel said. “We could double our trucking company with one acquisition.”
Titanium has about $65 million available to it, which could be used to drive growth. In 2019, the company grew organically, adding 23 trucks for a small net increase in both trucks and drivers. Daniel sees the current challenging market environment creating some interesting acquisition opportunities.
“We remain committed to seeking out accretive acquisitions,” Daniel said, adding “we have ample dry powder.”
Daniel is optimistic about the market’s short-term prospects. He expects to see capacity exit the industry in 2020, and cited slowing Class 8 orders and a glut of used trucks on auction lots as signs fleets are contracting. Rates have taken a hit, but Daniel feels pricing will firm up as shippers look to secure capacity later in the year.
“We still feel the second half of 2020 will bring in a stronger pricing market,” said Marilyn Daniel, chief operating officer.
The company said it has not been negatively impacted by the novel coronavirus pandemic.
Titanium recently added a Nashville office to its expanding U.S. brokerage division, and the company plans to add a third location by the end of the year. Daniel said the fledgling U.S. division is exceeding expectations since its May 2019 launch.
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