TransForce Inc. announced that a wholly-owned subsidiary of TransForce has entered into an agreement with Goldner Hawn Johnson & Morrison Incorporated to acquire the entire share capital of its portfolio company, Transport America, Inc., an important provider of truckload (TL) carriage and logistics services.
Founded in 1984, Transport America provides an integrated offering of dry-van TL transportation services across the U.S. It offers a wide array of short- and long-haul freight carriage, expedited and dedicated shipping services, as well as international and intermodal services through various partners. Its network includes 12 terminals located throughout the U.S. and utilizes more than 2,000 staff and independent contractors. Through its own fleet and independent contractors, Transport America operates approximately 1,500 tractors and about 4,400 trailers.
The transaction is subject to customary closing conditions and should close near the end of June 2014. The purchase price represents a total enterprise value of approximately US$310 million, including the assumption of Transport America’s debt of about US$150 million. TransForce will finance the transaction through its existing credit facility, and will continue to maintain a strong balance sheet and financial flexibility post-closing. This acquisition is expected to generate annual total revenues of approximately US$350 million.
“This acquisition will immediately provide TransForce with a critical mass in the highly-fragmented TL sector in the U.S. and we stand to benefit from Transport America’s extensive geographic footprint and longstanding relationships with blue chip customers. We expect this transaction to be immediately accretive to earnings and to provide a sound return on investment to the benefit of our shareholders,” said Alain Bedard, Chairman, President and Chief Executive Officer of TransForce.
The company will continue to be branded as Transport America and will be the platform for growth for TransForce in the U.S. truckload market.