Saturday, April 19th10.1°C

TransForce's US$136-million offer for Vitran comes out on top after bidding war

MONTREAL - TransForce Inc. (TSX:TFT) has come out the winner in a two-way bidding war for Vitran Corp. (TSX:VTN), another Canadian trucking and logistics company.

Toronto-headquartered Vitran is now supporting TransForce's offer of US$6.50 per share in cash for the stock it doesn't already own.

The deal is valued at US$136 million, including US$29 million of debt that will be assumed by Montreal-based TransForce, which is one of Canada's largest trucking and logistics companies.

"We are delighted to have reached agreement with Vitran for what represents the acquisition of an important strategic asset for TransForce with considerable synergistic benefits in the near term and into the future," Alain Bedard, TransForce's chairman, president and CEO, said in a statement Monday.

"We are looking forward to leveraging the strengths of both companies to enhance our service offering for our customers and welcoming the Vitran employees to the TransForce team."

Rival bidder Manitoulin Transport will receive a $4 million termination fee under the terms of its white-knight agreement with Vitran.

TransForce initially offered US$4.50 per Vitran share in September but Vitran's board later signed a friendly takeover agreement with Manitoulin Transport, which offered US$6 cash per share.

The Manitoulin deal was valued at US$128 million, including US$29 million of assumed debt.

TransForce announced on Dec. 20 that it was hiking its offer to US$6.50 per share cash — a price that Manitoulin declined to match, Vitran said Monday.

The Canadian Press

Read more Business News


Recent Trending

Today's Market
S&P TSX14500.39+53.87
S&P CDNX998.770.80
S&P 5001864.85+2.54
CDN Dollar0.90720.00
Natural Gas4.735+0.205

Okanagan Companies
Pacific Safety0.115+0.01
QHR Technologies Inc1.29+0.07
Anavex Life Sciences0.3750.00
Metalex Ventures0.08+0.005
Russel Metals30.66+0.11
Copper Mountain Mining2.35-0.07
Colorado Resources0.255-0.01
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02



1921779101-262 Kinney Avenue
2 bedrooms 2 baths
more details
Click here to feature your property
Please wait... loading

Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...

Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...

Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...




Member of BC Press Council