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TransForce buys Total Delivery, makes bid for Vitran

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TransForce Inc. (TSE:TFI), a Montreal-based transportation and logistics company, fluctuated in midday trading as it made a takeover proposal to Toronto-based Vitran Corp. (TSE:VTN) and announced acquisition of Total Delivery Systems, which is based in Victoria, British Colombia.

TransForce shares dropped 0.2 percent to C$21.72 at 1:32 p.m. in Toronto after rallying as much as 1.6 percent to C$22.24. The stock has gained 9.3 percent so far this year. 

Vitran jumped 7.2 percent to C$5.20, giving it a market value of C$85.45 million.

TransForce, which already owns 9.5 percent of Vitran, proposed to buy the rest of Vitran for $4.50 a share, according to a statement released after markets closed yesterday.

The proposal is conditional on the sale of Vitran’s U.S. less-than-truckload business, announced early this week, TransForce said, adding that Vitran would remain a standalone business and current management would remain in place.

TransForce has retained National Bank Financial Markets as its financial adviser.

In a statement today, TransForce said its subsidiary Dynamex Canada Ltd. acquired all the shares of Total Delivery Systems, which operates a network of 18 locations across British Columbia.

The takeover is expected to generate annual revenue of approximately $20 million. according to the statement.

"This acquisition significantly expands Dynamex Canada's geographic footprint, service offering and density across British Columbia," TransForce Chief Executive Officer Alain Bedard sad in the statement.

TDS provides courier and distribution services, including local messenger, time sensitive delivery, overnight service, storage, logistics, LTL and just-in-time package delivery.

TransForce shares have more than tripled over the past five years.

 

 

 

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