Manitoulin Transport to Buy Canadian Assets of Vitran
Ontario-based Manitoulin Transport Inc. has agreed to buy the Canadian assets of Vitran Corp. in a transaction valued at $128 million, the companies announced Dec. 9.
Vitran, a less-than-truckload carrier, had sold its U.S. assets in October for $2 million to Michigan trucker Matthew Moroun as losses mounted.
The agreement marks the latest step in a three-month struggle to control of Vitran’s profitable LTL network in Canada. Vitran and TransForce Inc. began discussions about purchase of the Canadian business after the U.S. assets were sold, but no agreement was reached.
“We are extremely excited to join with Manitoulin Transport to leverage the operational strengths of both companies,” CEO William Deluce said in a statement. “Together Vitran and Manitoulin Transport will become a formidable and diversified supplier for customers requiring a full suite of transportation and supply chain services in Canada and the United States.”
The sale came weeks after Manitoulin, which offers a variety of trucking services, bought the LTL and truckload assets of Manitoba-based Smooth Freight. Vitran would be Manitoulin’s fourth acquisition this year, following two other purchases earlier in 2013.
The Vitran transaction represents a 10.3% premium over the value of the company’s stock Dec. 9.
Vitran is ranked No. 40 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.
