Third-party logistics provider Wheels Group Inc. has signed an agreement to acquire freight broker and forwarder MSM Group of Cos. for $18.8 million in cash and stock.
Toronto-based Wheels Group will pay almost $17 million in cash and issue 2 million shares of its stock worth about $2 million for the Bolton, Ontario, company.
The transaction is set to close by the end of September, Wheels Group said.
“The acquisition of MSM supports our strategic goal of enhancing and broadening Wheels’ portfolio of logistics services by adding a well-established multinational [less-than-truckload] component,” Wheels CEO Doug Tozer said in a statement.
MSM offers LTL broker, forwarding and consolidation services in Canada and the United States. It serves the California ports of Long Beach and Los Angeles, as well as the surrounding area, with same-day service, Wheels Group said.