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
Just Released: Understanding Hazmat Transportation Management
The rules and regulations governing the transportation of hazardous materials (hazmat) are complex.
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
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
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...