TORONTO & SPARKS, Nev. — Vitran Corporation Inc. today announced that it plans to move into the Western U.S. through the purchase of a Nevada-based carrier.
The company, subject to Vitran Board of Director approval, has agreed in principle to acquire the assets of Sierra West Express, Inc., a Nevada-based, regional less-than-truckload (LTL) freight carrier with operations in the Western U.S., including terminals and coverage in California, Nevada and Arizona.
In the latest twelve-month period, Sierra West Express had revenues of $16.0 million.
Terms of the agreement were not disclosed, however, Vitran expects an accretive impact on 2006 earnings. Vitran expects this transaction, subject to Board and customary approvals, to close early in January 2006.
“The acquisition of Sierra West Express would be another critical component in Vitran’s strategy of establishing a unique, regional LTL freight transportation network that covers and serves the entire North American market,” stated Vitran President and Chief Executive Officer Rick Gaetz.
“Sierra West marks Vitran’s initial move into the Western U.S., and our plan, similar to the Company’s purchase of Chris Truck Line earlier in 2005, is to both expand and enhance Sierra West’s regional operations and subsequently cross-market LTL and logistics services in the West to our existing customers and to also offer Sierra West’s customers the opportunity to move freight to the growing number of North American regions Vitran presently serves. We look forward to working with President Mike Nelson and the Sierra West team,”Gaetz added.
Sierra West Express was established in 1991 and has eight terminals in California, Nevada and Arizona.
Vitran Corporation Inc. is a North American group of transportation companies offering less-than-truckload, logistics, truckload, and freight brokerage services.
To find out more visit www.vitran.com.
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