TransForce Inc. said it will buy fellow Canadian carrier Contrans Group Inc. for about C$495 million.
Under the deal, announced late July 24, TransForce will pay C$14.60 per share, a premium of about 16.7% over Contrans’ 52-week average share on the Toronto Stock Exchange.
“Contrans has a culture similar to that of TransForce, strategically acquiring companies that add value for its shareholders,” TransForce Chairman and CEO Alain Bédard said in a statement.
TransForce ranks No. 9 and Contrans Group is No. 49 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
The deal follows TransForce’s acquisition earlier this year of Toronto-based less-than-truckload carrier Vitran Corp. and its plan to purchase Minnesota-based Transport America — No. 71 on the TT 100 — for $310 million.
Separately, TransForce said its second-quarter net earnings more than doubled from a year ago, to C$62.8 million, or 61 cents per share, before a goodwill impairment charge.
Revenue rose to C$889.1 million from C$792.3 million a year ago, the company said.
“We are encouraged by the progress made in regards to productivity and overall efficiency improvements in all of our segments,” Bédard said. “This performance reflects the talent and dedication of our team, given an economy that remains flat in Canada and is slowly improving in the United States.”