SAINT-LAURENT, Que. (Feb. 1, 2000) — TransForce Inc has acquired less-than-truckload specialist TST Solutions for $85 million, a deal that will combine two of CanadaÕs largest trucking companies.
TST Solutions, headquartered in Mississauga, Ont., has annual sales of $170 million and employs 1200 people. The company will join TransForce as a wholly owned subsidiary, and its five operating divisions will continue to be managed independently under their existing names.
The company’s predominant operating group is TST Overland Express, an LTL carrier serving Ontario and, through an interlining agreement, the United States and Western Canada. It is seen as an operational complement to TransForceÕs Cabano Kingway division, which offers LTL coverage in Ontario, Quebec, the Maritimes, and the U.S. Northeast.
TST president and CEO John Stollery, who led a management buyout of the company from Dutch express delivery giant KPN in 1997, will serve as a consultant to TransForce.
Gary King and George Hendrie will continue in their roles as president of their respective divisions, TST Overland Express and TST Expedited Services. TSTÕs other divisions — an intermodal load brokerage service, a truckload group, and an automotive transport specialist– will retain their current management as well.
Combined, TransForce and TST will employ more than 3100 and operate a fleet of 7000 units, and have annual sales of $400 million. The deal is expected to be complete in March.
To finance the transaction, TransForce said it would issue $40 million of convertible debentures to its principal shareholders, Jolina Capital Inc. and the Fonds de solidaritŽ des travailleurs du Quebec.
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