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TFI share offering could add $200 million to M&A war chest

Company plans to sell 4 million shares in U.S. and Canada

TFI International, which owns CFI, will be in a stronger position to acquire more companies after it completes its share offering. (Photo: Jim Allen/FreightWaves

TFI International (NYSE:TFII) plans to sell 4 million shares of common stock in an offering that could raise more than $200 million, which could fuel potential acquisitions. 

Canada-based TFI announced the share offering on Tuesday. The company said it will use the proceeds for working capital and to pay down a credit facility that it may use for “for general corporate purposes, including acquisitions.”

TFI has been active on the acquisition front in recent months. The company has made four acquisitions since June, including two from bankrupt Comcar.  

TFI will market the shares in the U.S. and Canada. Its shares trade on the Toronto Stock Exchange and the New York Stock Exchange.

Based on the closing price of TFI shares on Tuesday, the offering could generate more than US$200 million if its underwriters exercise their option to purchase 600,000 shares.

The offering is being led by Morgan Stanley, BofA Securities, Credit Suisse, Goldman Sachs & Co. LLC, and J.P. Morgan as joint co-bookrunners. 

TFI is Canada’s largest transportation and logistics company, with extensive U.S.-based truckload operations.

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Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected].