Vitran sells off truckload unit to Online Transport

Freight transportation and logistics services provider Vitran Corporation Inc. said it has sold selected assets of Frontier Transport Corporation, its owner-operator truckload operation, to Indianapolis-based Online Transport.

By ·

Freight transportation and logistics services provider Vitran Corporation Inc. said it has sold selected assets of Frontier Transport Corporation, its owner-operator truckload operation, to Indianapolis-based Online Transport.

Company officials said Online Transport purchased 794 trailers, with Vitran retaining 174 of the newest trailers which will be redeployed in its less-than-truckload operation. They added that the proceeds and net working capital of this deal is roughly $5 million.

“For the last few years, Vitran has been focusing on its two core segments, LTL and Supply Chain Operations,” said Rick Gaetz, Vitran president and CEO, in a statement. “Frontier, our small owner-operator Truckload operation, took a back seat. Therefore, we are extremely pleased with this transaction as the majority of our associates will continue to serve our many valued Truckload customers, and our sole focus will be on our two core operations.”

Gaetz was unavailable for additional comments at press time.

Frontier will continue to be led by Steve Cook, its current president, at Online Transport.

Stifel Nicolaus analyst David Ross wrote in a research note that this sale is “positive and unsurprising, as Frontier was not a core strategic fit with Vitran’s other operations; the company has been looking to (opportunistically) sell it for some time.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

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!

Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...