EAGLE USA AIRFREIGHT BUYS TWO CANADIAN FORWARDERS
Eagle USA Airfreight Inc., a fast growing U.S. domestic air forwarder
with international expansion plans, has signed agreements to buy two
Toronto-based forwarders — Fastair Cargo Systems Ltd. and Commercial Transport
International (Canada) Ltd.
Eagle will pay $19 million in cash up front, and $4.9 million payable in
three equal annual installments, for all of Fastair’s shares. Eagle will
acquire the outstanding stock of CTI Canada, Fastair’s sister company, for about $2.4
million in cash. Eagle also has agreed to an additional $7.8 million in cash and stock if
certain earnings targets are met over the next three years.
Fastair is one of the leading forwarders in the intra-Canada freight
market, while CTI Canada serves primarily international shippers. The
majority owner of Fastair and CTI Canada, Ajay K. Virmani, together with shareholders
Chris Ralphs, Raymon Lord and Dan Mills, will continue to manage the companies, as well as
Eagle’s current Canadian operations.
The acquisitions are expected to add $44 million to $48 million in gross
revenue, $17 million to $19 million in net revenue, and $5.3 million to $5.8 million in
operating income over the next four quarters, Eagle said.