Vitran Corp. said it has agreed to sell its money-losing U.S. less-than-truckload operations for $2 million to industry figure Matthew Moroun, owner of less-than-truckload carrier Central Transport.
“We are pleased to have reached an agreement to sell our U.S. LTL business,” William Deluce, Vitran’s interim CEO, said in a statement, which cited unsuccessful efforts to reverse the fortunes of Vitran operations in the United States. The company retains a profitable Canadian LTL unit.
In the first half of 2013, Vitran’s overall LTL loss more than tripled to $31 million.
“With the assistance of our financial advisors, we have evaluated a wide range of strategic alternatives over the last five months,” Deluce continued. “We are pleased to have agreed upon a plan that we believe gives Vitran’s U.S. LTL employees and customers the best chance to prosper while also preserving value for all of Vitran’s stakeholders.”
The statement said Moroun, whose holdings include truckload and logistics companies as well as the international Ambassador Bridge connecting Detroit and Windsor, Ontario, will assume liabilities of the U.S. operation and fund it until the transaction closes.