MONTREAL, Que. — TransForce has announced a major US purchase, acquiring truckload carrier Transport America.
The deal gives TransFoce a substantial US presence. Transport America operates 12 terminals throughout the US, employs 2,000 staff and independent contractors and operates 1,500 tractors and 4,000 trailers.
The Eagan, Minn.-based company was founded in 1984 and provides dry van truckload transportation services across the US. TransForce expects the deal to close by the end of June.
The purchase price was approximately US$310 million and includes the assumption of about US$150 million in Transport America’s debt.
TransForce says the deal should add about US$350 million in annual total revenues to its operations.
“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,” announced Alain Bedard, chairman, president and CEO of TransForce. “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.”
“The acquisition meets all of the criteria we established as we explored ownership options, and we could not be more pleased,” added Scott C. Arves, Transport America’s president and CEO. “Together, with shared resources and stronger access to capital to support growth, we will be better positioned to serve customers and provide increased opportunities for our employees.”
TransForce said Transport America will continue to be branded as its own entity.
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