WOODBRIDGE, Ont. – Titanium Transportation Group announced today that it will acquire ProNorth Transportation.
According to the companies, the transaction is expected to close on Dec. 1, 2015. Titanium will acquire all of the stock of ProNorth for total cash consideration of $5.8 million and 1,750,000 common shares. Upon closing, ProNorth is expected to have approximately $1.7 million of cash on hand, the companies said.
ProNorth is an asset-based company based in North Bay, Ont. with terminals in Mississauga and Sudbury, Ont. and facilities in Timmins, Ont. It provides truckload van services to more than 250 customers with 110 power units, 280 trailers and 150 employees and owner/operators.
Titanium says the acquisition increases its fleet size by more than 30% to a total of more then 450 power units and 1,200 trailers.
In addition, under the terms of the definitive purchase agreement, the remaining $4.1 million of the cash consideration will be funded using Titanium’s existing credit facilities. Titanium will also be purchasing certain real estate used in the operation of ProNorth for the aggregate purchase price of $2.5 million.
“Titanium has a proven track record of acquiring asset-based transportation companies, extracting synergies, and implementing its leading edge technology,” said Ted Daniel, CEO of Titanium. “This acquisition expands Titanium’s geographic profile in Northern Ontario, allows for synergies with Titanium’s existing lanes and Bracebridge terminal, and creates a platform for growth in the region. In addition, ProNorth’s dry van business is highly complementary to Titanium’s existing flatbed business in Northern Ontario.”
Brian Glass, CEO of ProNorth also commented: “Titanium provides a unique and compelling opportunity to participate in the rapid growth of a new generation transportation company. We are excited to be joining the Titanium team.”