- TFI International Inc. (TFII) has signed a US$525 million definitive agreement with Heartland Express Inc.
- The assets being sold generated approximately US$400 million in revenue after operating expenses during 2021
- The transaction has been approved by the boards of TFI and Heartland and is expected to close in the third quarter of this year
- Some of the proceeds will be used to help settle parts of TFI’s debt
- TFI International Inc. (TFII) is down 1.73 per cent and is trading at $130.31 per share as of 11:44 a.m. ET
TFI International (TFII) has agreed to sell CFI’s Truckload, Temp Control, and Mexican non-asset logistics businesses to Heartland Express for US$525 million.
TFI stated the sold assets generated approximately US$400 million in revenue after operating expenses during 2021. The transaction has allegedly been approved by the boards of TFI and Heartland and is expected to close in the third quarter of this year.
“For TFI, the decision to sell was reached following a thorough evaluation of our portfolio, and aligns perfectly with our longstanding focus on driving cash flow and ROIC… by allowing TFI to concentrate its U.S. operations on higher-return [less-than-truckload], asset-light logistics, and specialized truckload, this transaction will reduce our capital intensity, with some of the proceeds used to pay down debt in the near term and over time redeployed with the objective of generating higher returns,” Alain Bédard, Chairman, President and CEO of TFI, said.
The assets operate primarily in TFI’s truckload segment and provide various truckload services. Combined, the assets have roughly 2,000 tractors, 7,800 trailers and 2,800 employees.
“Together, our companies will offer customers the nation’s third largest asset-based, irregular route truckload capacity and drivers unparalleled opportunity… working with the teams from TFI International and CFI to reach this highly strategic and common-sense transaction for the benefit of all parties,” Michael Gerdin, Chairman and CEO of Heartland Express, said.
TFI International Inc. (TFII) is down 1.73 per cent and is trading at $130.31 per share as of 11:44 a.m. ET.
