Vitran sells off truckload unit to Online Transport
December 01, 2010
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.”
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