TORONTO, Ont. — Vitran Corporation Inc., a North American transportation and logistics firm, has announced the purchase of retail supply chain management specialist Las Vegas/L.A. Express, Inc. based in Ontario, CA.
The acquisition consideration was approximately $12.6 million in cash, including assumed debt of approximately $2 million and $4.35 million of contingent consideration, based on achievement of future performance metrics. The transaction closed November 30th.
“The accretive acquisition of LVLA, a key addition to Vitran’s growing logistics footprint, is an excellent strategic, geographic and financial fit for our organization,” stated Vitran President and Chief Executive Officer Rick Gaetz.
“LVLA’s management expertise and retail-oriented clientele matches Vitran’s logistics focus. Vitran Logistics has developed an expertise in the retail supply chain and LVLA’s retail client base augments our initiatives to support and re-engineer North American supply chain requirements. Their California base of operations is very appealing as we focus on developing off-shore opportunities through the Port of L.A. in a similar fashion to our successes on the Canadian West Coast,” concluded Gaetz.
LVLA adds 470,000 square feet of supply chain logistics space under management, bringing Vitran’s total to 1,240,000 square feet throughout the U.S. and Canada. LVLA currently operates from six leased facilities. In addition to its Ontario, CA headquarters, the company has distribution centers in San Diego and Chino, CA, Las Vegas, NV, Phoenix, AZ and Albuquerque, NM.
For the trailing 12-month period ended September 30, 2007, LVLA achieved estimated revenues of $25.5 million and normalized EBITDA of $3.5 million. The purchase price represented an estimated 3.6X LVLA’s TTM EBITDA. The transaction is expected to be accretive to Vitran’s December 31, 2008 year-end results by approximately $0.05 to $0.07 per share.
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