- Transport and logistics company, TFI International (TFII) has signed a definitive agreement for the acquisition of DLS Worldwide
- DLS is a business unit of R.R. Donnelley & Sons, and provides logistics services through a third-party logistics network
- TFI will incorporate DLS into its Logistics segment under its new name, “TForce Worldwide Inc”
- The acquisition is worth approximately C$296 million, and should close within the next 60 days
- TFI International (TFII) is down 1.63 per cent and is currently trading at $56.03 per share
Transport and logistics company, TFI International (TFII) has signed a definitive agreement for the acquisition of DLS Worldwide.
DLS is a business unit of R.R. Donnelley & Sons Company, and provides logistics services through a third-party logistics network. This network consists of internal sales personnel, commissioned sales agents, and approximately 140 agent-stations.
The company’s customer base is diverse, and includes sectors such as manufacturing, retail/wholesale consumer products, technology, and print/mail.
DLS’ primary modes of transportation include less-than-truckload, truckload, freight forwarding, expedited, parcel, and intermodal. During a recent 12-month period, the company generated approximately C$724 million in revenue.
TFI intends to incorporate DLS into its Logistics segment, where it will operate standalone under its new name, “TForce Worldwide Inc”, or TFWW. The company estimates that DLS will generate approximately C$29.6 million in operating income during the first four full quarters after the transaction closes.
The acquisition is worth approximately C$296 million, and should close within the next 60 days. This is, however, dependent on customary closing conditions such as regulatory review and approval.
TFI’s Chairman, President, and CEO, Alain Bédard, commented on the company’s latest acquisition target.
“We eagerly look forward to welcoming Thomas and his impressive team to TFI International, where the DLS business can continue its successful track record while significantly expanding our US presence and capabilities.
“The asset light model of the DLS business will expand our reach through a significant agent station network and represent a compelling opportunity as our first major US logistics operation focused primarily on LTL.
“We look forward to supporting the continued growth of the DLS business as part of the TFI family of companies,” he said.
TFI International (TFII) is down 1.63 per cent and is trading at $56.03 per share, as of 12:59pm EDT.
