Winnipeg Free Press - PRINT EDITION

Trucking firm Vitran in TransForce hands

  • Print

MONTREAL -- TransForce Inc. (TSX:TFI) 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.

TransForce said Monday it owns 19.95 per cent of Vitran shares and has an agreement to acquire a further 2.55 per cent from a subsidiary of Clarke Inc. (TSX:CKI).

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.

TransForce shares ran ahead 42 cents to $25.33 after the Toronto Stock Exchange opened while Vitran was unchanged at $7.13.

 

-- The Canadian Press

Republished from the Winnipeg Free Press print edition December 31, 2013 B5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

New Pornographers frontman says latest album is band's 'best'

View more like this

Photo Store Gallery

  • June 24, 2012 - 120624  -  Amusement riders on the last day of The Ex Sunday June 24, 2012.    John Woods / Winnipeg Free Press
  • Perfect Day- Paul Buteux walks  his dog Cassie Tuesday on the Sagimay Trail in Assiniboine Forest enjoying a almost perfect  fall day in Winnipeg- Standup photo – September 27, 2011   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Should panhandling at intersections be banned?

View Results

View Related Story

Ads by Google