TransForce to Buy Vitran’s Canadian Assets
Less-than-truckload carrier Vitran Corp. said it has agreed to be acquired by TransForce Inc., which outbid Manitoulin Transport Inc. for Vitran’s Canadian assets.
Vitran’s which sold its U.S. LTL business in October, had agreed earlier in December to be acquired by Manitoulin for $6 per share, or about $128 million. But TransForce made an offer of $6.50 a share, or about $136 million, it announced Dec. 20.
“We are delighted to have reached agreement with Vitran for what represents the acquisition of an important strategic asset for TransForce with considerable synergistic benefits in the near term and into the future,” TransForce CEO Alain Bédard said in a Dec. 30 statement. “We are looking forward to leveraging the strengths of both companies to enhance our service offering for our customers and welcoming the Vitran employees to the TransForce team.”
Manitoulin did not exercise its right to outbid TransForce, Vitran said. Vitran is in the process of paying a $4 million fee to Manitoulin for terminating the agreement.
Vitran is ranked No. 40 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers. TransForce is ranked No. 8.
