Transforce’s acquisition of Vitran is a done deal

Toronto-based less-than-truckload (LTL) carrier and transportation services provider Vitran Corporation has officially been acquired by TransForce, a provider of transportation and logistics services for $6.50 per share.

By ·

Toronto-based less-than-truckload (LTL) carrier and transportation services provider Vitran Corporation has officially been acquired by TransForce, a provider of transportation and logistics services for $6.50 per share.

“The acquisition of Vitran will further enhance our density in the Canadian LTL market and provide synergies going forward,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce, in a statement. “Vitran will remain a standalone entity, under the leadership of Tony Trichilo, within the TransForce group of companies. We are looking forward to leveraging the strengths of the two companies to the benefit of our customers and shareholders. I would like to welcome all Vitran employees and management to the TransForce team.”

In early January, Vitran said that it terminated an agreement to be acquired by Manitoulin Transport Inc., a Pembroke, Ontario-based provider of LTL transportation services and entered into a definitive arrangement agreement with TransForce.

Prior to that announcement, Transforce owned roughly 20 percent of Transforce’s total outstanding shares, following its November purchase of 10.44 percent of Vitran shares, according to a Toronto Globe and Mail report.

Transforce said at the time that that the total transaction, including the assumption of Vitran’s outstanding net debt of approximately $29 million at October 31, 2013, is valued at approximately US$136 million, adding that the $6.50 share price represents an 11.16 percent premium to Vitran’s closing price on NASDAQ on December 9, 2013, the day that Vitran’s proposed transaction with Manitoulin Transport Inc. was announced, and a 41.38 percent premium to the closing price on NASDAQ on September 20, 2013, the day before the announcement of the sale of Vitran’s US Less-Than-Truckload (LTL) business.

Vitran said in January its board of directors “determined that TransForce’s proposal was a ‘superior proposal’ for the purposes of the arrangement agreement. And it added that Manitoulin—whose early December offer of $6 per share, with the total transaction including the assumption of Vitran’s outstanding net debt of $29, which was valued at roughly $128 million—has waived its right to match the TransForce proposal. The company said that Vitran and Manitoulin agreed to terminate the Maintoulin contract concurrent with the entering into of the TransForce agreement, with a $4 million termination fee being paid by Vitran.

Prior to the early December announcement that Manitoulin was going to acquire Vitran, that development followed the aforementioned completion of the October sale of Vitran’s United States-based less-than-truckload business, which was initially announced in late September.

The business was acquired by Matthew Moroun, vice chairman of Warren, Mich.-based LTL carrier Central Transport International and an industry veteran associated with various transportation industries, including: LTL, TL, flatbed, 3PL, and warehousing.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

LTL · Vitran Corporation · All Topics
Latest Whitepaper
B2B Sellers Prefer a Unified Approach for Ecommerce
A new study from Forrester Consulting, commissioned by NetSuite, found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...

Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....
Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...