TransForce Inc. (TSE:TFI), a Canadian transportation and logistics company, hit a new record high after posting better-than-expected second-quarter results and agreeing to acquire Contrans Corp. for C$495 million.
Shares jumped 7.4 percent to C$27.04 at 9:39 a.m. in Toronto.
Net income more than doubled to $62.8 million in the three-month period ended June 30, from $26.6 million, in the year-earlier period, the Montreal, Quebec-based company said in a statement late yesterday.
Adjusted earnings were $0.48 per diluted share, surpassing analysts' average estimate of $0.42.
Revenue increased to $889.1 million in the second quarter, from $792.3 million a year earlier. That beat Wall Street's consensus of $885.6 million.
"TransForce's solid second-quarter results reflect constant discipline in the execution of its business strategy and in capital management," TransForce Chief Executive Officer Alain Bedard said in the statement.
Also yesterday, TransForce appointed Alain Raquepas as Chief Financial Officer.
Separately, TransForce agreed to buy transportation-services firm Contrans for C$14.60 in cash.
If all conditions are satisfied, Contrans will also declare a special dividend of 40 Canadian cents a share.
The special dividend will be paid to Contrans shareholders of record immediately prior to TransForce taking-up and paying for tendered shares under the offer.
"Contrans has a history of profitability, is financially sound and has seen steady growth over the years," Bedard said in a separate statement.
The offer is expected to commence on or about August 21.
National Bank Financial Inc. is acting as financial advisor to TransForce.