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TFI still making deals, acquires Fleetway

Acquisition of Canadian carrier follows $800 million purchase of UPS Freight

TFI acquires Fleetway (Photo: Fleetway)

One week removed from the $800 million blockbuster deal for UPS’ (NYSE:UPS) LTL division, UPS Freight, which netted it a top-5 market share in the less-than-truckload space, TFI International (NYSE: TFII) is back at it, this time acquiring a smaller truckload carrier.

The Canadian trucking and logistics company announced Monday the acquisition of Brantford, Ontario-based Fleetway Transport. The nearly 40-year-old company specializes in full TL shipments and heavy-haul flatbed loads.

Financial terms of the transaction were not provided but the release said the company generated CA$25 million, or $19.5 million, annually.

“Fleetway operates a unique and profitable heavy-haul and specialized van business that’s highly synergistic with our existing network,” said TFI Chairman and CEO Alain Bedard in the press release. “Expansion of Fleetway’s strong customer relationships built over the years is one of multiple growth opportunities we see, which include expanding Fleetway’s business into regions such as Mexico leveraging our affiliates and utilizing our brokerage capabilities to drive business their way.”

Bedard mentioned opportunities to improve asset utilization within the fleet as part of expected post-deal synergies. The release said current management will remain on board with TFI. Fleetway will operate as a stand-alone unit within TFI’s specialized TL segment and will continue to be run by President David Rees and VP of Finance Scott Walker.

Fleetway has a fleet of more than 80 tractors and 250 trailers with a staff of more than 100 employees. Its three terminals in Brantford provide service to all of North America, primarily hauling forestry equipment, refrigeration equipment and consumer packaged goods. Additionally, Fleetway offers warehousing services.

The Fleetway deal may not require a conference call with analysts and investors like the purchase of UPS Freight did but it is more representative of the more than 90 acquisitions TFI has made since 2008.

UPS Freight will operate independently within TFI’s LTL unit under the new banner TForce Freight once the deal closes in the second quarter.

Shares of TFII are up 38% since the announcement of the UPS Freight acquisition.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.