Titanium Transportation Group has acquired Canadian dry van truckload and flatbed carrier Xpress Group, based in Windsor, Ontario, for C$3.1 million in cash and the assumption of C$5.2 million in debt.
“This is exactly the type of acquisition we have been waiting for,” said Ted Daniel, CEO of Titanium in a statement issued Oct. 2. “We expect to be able to achieve significant synergies between Titanium and Xpress. In addition, Xpress’ customer base complements the cross-border, full-truckload division that we have focused on growing.”
Titanium, based in Bolton, Ontario, generated revenue of C$116.6 million in 2016 and operates a fleet of 450 power units and 1,500 trailers. The company also provides freight brokerage and warehousing and distribution services.
The deal is Titanium’s first acquisition this year and the first since the purchase of assets of Drive Logistics in June 2016.
Titanium ranks No. 51 on the Transport Topics list of largest for-hire carriers in the truckload/dedicated sector.
Xpress Group owner Dave Tracey said the company, which started as a flatbed carrier more than 30 years ago, has grown significantly since it added a van division in 2008. He said the company has developed an established customer base in southern Ontario and primarily hauls goods from Canada into the Midwestern region of the United States.
“In my view, the acquisition represents the best path forward for Xpress to continue to add value to what we built from the ground up,” Tracey said. “I am very excited to now be a part of Titanium’s growth story.”
With the acquisition, Titanium officials said they expect revenue to increase 12% to C$140 million in 2017 with earnings before interest, taxes and depreciation to increase 15% to C$15 million.
In the six months ended June 30, Titanium reported net income of C$400,000 on revenue of C$62.6 million. That compared with a net loss of C$300,000 on revenue of C$58.1 million in the same period in 2016.