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TFI International (TSX:TFII) continues acquisition streak

Transport
TSX:TFII
09 September 2020 15:13 (EST)

Transport and logistics company, TFI International (TFII) has acquired CCC Transportation, another former subsidiary of Comcar Industries.

CCC is primarily a bulk truckload carrier in the south-eastern United States, headquartered in Auburndale, Florida. 

The company is one of Florida’s largest intrastate motor carriers, and offers a wide variety of services in states like Florida and Georgia. These include cement hauling services, as well as dry van, intermodal, dedicated fleets, logistics, and retail direct delivery. 

CCC currently has about 80 drivers, who operate nearly 100 tractors and over 80 trailers. The company generates approximately C$13 million in annual revenue.

TFI paid a total consideration of approximately C$8.9 million for the acquisition of CCC, its associated real estate assets, and additional equipment. 

This is not the first Comcar Industries subsidiary acquisition that TFI has completed this year. Comcar and its subsidiaries filed Chapter 11 petitions in the US Bankruptcy Court on May 17, 2020. 

As part of those bankruptcy proceedings, TFI purchased both CT Transportation and MCT Transportation, other subsidiaries of Comcar. The acquisitions form part of TFI’s efforts to obtain more assets within the transport and logistics sector. 

Many of the acquisitions made by the company this year, such as MCT and Gusgo Transport, have been added to TFI’s Truckload division. After this latest acquisition is completed, CCC Transportation will also become part of the Truckload segment.

TFI International’s Chairman, President, and CEO, Alain Bédard, commented on the company’s latest acquisition.

“We welcome the CCC team to the TFI family of companies and are pleased to strategically bring onboard several additional attractive assets of Comcar, following our earlier acquisitions of CT and MCT assets.

“CCC fits nicely with our existing BTC southern cement business and represents another important addition to our expanding specialised Truckload operations,” he said.

TFI International (TFII) is up 2.65 per cent and is trading at $57.62 per share at 11:55am EDT.

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