CALGARY, Alta. - TransForce has closed a deal to acquire Canadian Freightways from its beleaguered parent company, Consolidated Freightways.The acquisition will cost TransForce $69.6 million as well a...
CALGARY, Alta. – TransForce has closed a deal to acquire Canadian Freightways from its beleaguered parent company, Consolidated Freightways.
The acquisition will cost TransForce $69.6 million as well as the assumption of loans and credits of about $15 million.
It’s expected the acquisition will be completed by year-end.
Canadian Freightways’ parent company, Consolidated Freightways is under Chapter 11 bankruptcy protection in the U.S.
However, the Canadian subsidiary is not under any such protection.
However, the U.S. Bankruptcy Court had to approve the transaction, and did so Aug. 25.
Calgary-based Canadian Freightways brought in $236 million in revenue last year.
The company operates a less-than-truckload business, as well as freight forwarding, customs brokerage and fleet and logistics management divisions.
“Canadian Freightways is a profitable, well-managed enterprise and adding this company to the TransForce group will provide unparalleled coverage to our customers across Canada and beyond.
“Moreover, the addition of Canadian Freightways will increase our range of services and significantly augment our business,” said Alain Bedard, president and chief executive officer of TransForce.
TransForce plans to operate Canadian Freightways as an independent division and will retain its current staff of about 1,500 people, as well as current Canadian Freightways president, Darshan Kailly.
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