TFI International Agrees to Acquire DLS Worldwide
September 15 2020 - 8:00AM
TFI International Inc. (NYSE and TSX: TFII), a North American
leader in the transportation and logistics industry, today
announced that it has signed a definitive agreement to acquire DLS
Worldwide (“DLS”), a business unit of R.R. Donnelley & Sons
Company. Established in 2006 and based out of Bolingbrook,
IL, DLS provides logistics services through a third-party logistics
(“3PL”) network of internal sales personnel, commissioned sales
agents, and approximately 140 agent-stations. DLS’ primary
transportation modes include less-than-truckload, truckload,
freight forwarding, expedited, parcel and intermodal. The US
$225 million acquisition is expected to close within the next 60
days subject to customary closing conditions including regulatory
review and approval.
Over a recent 12-month period, DLS generated
approximately US $550 million in revenue, including intercompany
sales that are expected to continue after closing. TFI
expects the acquired operations to generate approximately US $22.5
million in operating income during the first four full quarters
after closing, before potential synergies and non-cash amortization
of intangible assets and related purchase accounting adjustments.
Led by its president, Thomas Griffin, DLS’s dedicated team of
employees and agents serves a diverse, longstanding customer base
spanning a broad array of end markets including manufacturing,
retail/wholesale consumer products, technology and print/mail.
The acquired business will operate standalone within TFI
International’s Logistics segment under its new name, “TForce
Worldwide Inc.” or “TFWW.”
“We eagerly look forward to welcoming Thomas and
his impressive team to TFI International, where the DLS business
can continue its successful track record while significantly
expanding our US presence and capabilities,” stated Alain Bédard,
Chairman, President and Chief Executive Officer of TFI
International. “The asset light model of the DLS business
will expand our reach through a significant agent station network
and represent a compelling opportunity as our first major US
logistics operation focused primarily on LTL. We look forward to
supporting the continued growth of the DLS business as part of the
TFI family of companies.”
ABOUT TFI INTERNATIONALTFI International Inc.
is a North American leader in the transportation and logistics
industry, operating across the United States, Canada and Mexico
through its subsidiaries. TFI International creates value for
shareholders by identifying strategic acquisitions and managing a
growing network of wholly owned operating subsidiaries. Under the
TFI International umbrella, companies benefit from financial and
operational resources to build their businesses and increase their
efficiency. TFI International companies service the following
segments:
- Package and Courier;
- Less-Than-Truckload;
- Truckload;
- Logistics.
TFI International Inc. is publicly traded on the
New York Stock Exchange and the Toronto Stock Exchange under the
symbol TFII. For more information, visit www.tfiintl.com.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis press release contains forward-looking
statements within the meaning of applicable Canadian securities
laws, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and
such statements are subject to the safe harbor created by those
sections and the Private Securities Litigation Reform Act of 1995,
as amended. Such statements may be identified by their use of terms
or phrases such as "expects", "estimates", "projects", "believes",
"anticipates", "plans", "intends", “will”, “look forward to” and
similar terms and phrases. In this press release, the statements
regarding the acquisition and expected financial results and future
operations of the acquired business are forward-looking statements.
Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks
and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ
materially from those set forth in, contemplated by, or underlying
the forward-looking statements. Such risks and uncertainties
include without limitation: the closing of the acquisition may not
occur due to failure of closing conditions, including required
governmental and/or third party consents, the closing may occur but
expected results of operations may not be achieved due to a variety
of factors including those disclosed in our filings with Canadian
regulatory authorities and the Commission. TFI disclaims any
obligation to update or revise any forward-looking statements to
reflect actual results or changes in the factors affecting the
forward-looking information.
For further information:Alain
BédardChairman, President and CEOTFI International
Inc.647-729-4079abedard@tfiintl.com
TFI (TSX:TFII)
Historical Stock Chart
From Aug 2024 to Sep 2024
TFI (TSX:TFII)
Historical Stock Chart
From Sep 2023 to Sep 2024