COMPETITION WATCH: TransForce takes over domestic operations of DHL Express Canada
April 29, 2011
MONTREAL, Que. -- TransForce and DHL Express Canada have announced a 10-year strategic alliance that will see the two companies integrate their domestic and international shipping and logistics offerings.
MONTREAL, Que. — TransForce and DHL Express Canada have announced a 10-year strategic alliance that will see the two companies integrate their domestic and international shipping and logistics offerings.
TransForce will purchase the assets of DHL Express Canada’s domestic business and will take over its domestic operations through Loomis Express, a newly formed subsidiary of TransForce, the companies announced.
DHL Express Canada will focus exclusively on the Canadian international shipping segment. Under the agreement, the companies claim Loomis Express and DHL Express Canada will offer Canadian businesses a fully integrated international and domestic suite of shipping and logistics services. The deal should close within 30 days, they announced.
“This transaction is strategic to TransForce for several important reasons,” said Alain Bedard, chairman, president and CEO of TransForce. “This asset purchase will solidify our position as a leading Canadian provider of package and courier services in Canada, plus the DHL partnership opens the door to international transport coverage for our existing customers.”
He added the combination of the two customer bases will add greater scale in the market and provide increased efficiencies.
“With our recent Dynamex acquisition, we are significantly increasing our density in the Canadian package and courier sector. We are confident of our ability to successfully integrate these businesses as we have done in the past within the TransForce family of companies and firmly believe that this latest purchase will benefit our shareholders,” Bedard said. “This transaction will not create any changes in our other package and courier businesses as Loomis Express will be a standalone operation.”
“Today’s announcement is a further execution of our global strategy to focus on our core competency, the growing international express business,” added Ken Allen, CEO of DHL Express. “By entering into a strategic alliance with the market-leading domestic provider, we can even better meet the dynamic and growing needs of our Canadian customers by offering highest quality, seamless integrated shipping solutions that are second-to-none.”
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