TransForce acquires another North American express carrier
Acquisition-hungry logistics company TransForce Inc has expanded its operations in North America further by snapping up the Toronto-based express carrier Concord Transportation Inc. The deal comes just a few months after Montreal-based TransForce agreed to buy the Canadian domestic network of DHL Express.
It was announced this week as TransForce revealed second quarter revenues that have swelled 31% partly thanks to February’s acquisition of Dallas-based courier firm Dynamex and last year’s acquisition of Colorado-based logistics firm Speedy Heavy Hauling, Inc.
Concord Transportation specialises in cross-border transportation, with three decades of experience behind it.
TransForce said its new addition provides full coverage throughout North America, with a network of officers in Ontario, British Columbia, Illinois, California and Washington State.
Concord has 96 employees, but operates mainly through its 130 independent contractors, with annual revenues of around $35m.
Alain Bédard, TransForce chairman, president and chief executive officer (pictured top right), said his company was pursuing a “relentless focus” on operating efficiency, but through its strategy of expansion through targeted acquisitions, the company is building its package services.
“With the addition of Dynamex and the creation of Loomis Express through the acquisition of DHL Express Canada’s domestic operations, we are positioned to further leverage the strength of our expanded Package and Courier network,” he said.
“Solid”
Reporting on a “solid” second quarter of 2011, TransForce recorded a $153.9m increase in revenues for the three months, to $650.8m. Around $140m of this was directly from Dynamex and Speedy Heavy Hauling.
Profits for the three months to June 30, 2011, stood at $26.2m, up from $17m in the same period in 2010.
Revenues for the first half of 2011 broke through the billion dollar mark, with the $1.2bn total a 25% surge on revenues made in the first half of 2010.
Profits for the first half were $41.2m, a slight decrease year-on-year from the $43.1m seen last year.
Bédard said the Less-than-Truckload segment had remained challenging during the second quarter, adding that TransForce was taking further measures to optimise its LTL network.
The package and courier segment for TransForce saw a 140% increase in revenues thanks to the various acquisitions, from $94m to $225.3m in the second quarter 2011 compared to the same period last year.
In the first half, package and courier revenues rose 104% year-on-year from $183.6m to $374m, with profits of $25.9m an increase on last year’s first half profit of $15.8m.
Bédard said going forward, TransForce would work to improve efficiency while also looking for further acquisition opportunities.
He said: “As economic signals remain mixed, particularly in the U.S., TransForce will seek to maximize efficiencies and profitability from its recent acquisitions while focusing on cash flow generation and debt reduction. In parallel, we intend to remain active, yet highly disciplined and selective when acquiring businesses in our key market segments.”
