Formal agreement to deliver a best‐in‐class fully integrated international and domestic shipping proposition
(Montréal, Québec and Toronto, Ontario, April 29, 2011) … TransForce Inc. (“TransForce” or “the
Company”) (TSX: TFI) and DHL Express Canada jointly announced today that they have entered into a
formal agreement to engage in a 10 year strategic alliance that will result in a fully integrated and
innovative domestic and international shipping and logistics offering for Canadian and international
businesses. Under the terms of the agreement TransForce, the leader in Canada’s transportation
industry, is buying the assets of DHL Express Canada’s domestic business and will take over its domestic
operations through Loomis Express, a newly established subsidiary of TransForce. This will allow DHL
Express Canada to leverage its core strength and focus exclusively on the Canadian international
shipping segment. Under the agreement, Loomis Express and DHL Express Canada will provide Canadian
businesses with a completely integrated international and domestic suite of innovative and strongly
competitive logistics and shipping services. The transaction, which is still subject to regulatory approval,
is expected to close within thirty days.
“This transaction is strategic to TransForce for several important reasons,” stated Alain Bédard,
Chairman, President and Chief Executive Officer of TransForce Inc. “This asset purchase will solidify our
position as a leading Canadian provider of package and courier services in Canada, plus the DHL
partnership opens the door to international transport coverage for our existing customers. TransForce’s
pan Canadian infrastructure will deliver expanded Canadian coverage to DHL’s domestic customers, and
the combination of the two customer bases adds material revenue, creating greater scale in the market
with superior efficiencies. With our recent Dynamex acquisition, we are significantly increasing our
density in the Canadian package and courier sector. We are confident of our ability to successfully
integrate these businesses as we have done in the past within the TransForce family of companies and
firmly believe that this latest purchase will benefit our shareholders. This transaction will not create any
changes in our other package and courier businesses as Loomis Express will be a standalone operation.”
“Today’s announcement is a further execution of our global strategy to focus on our core competency,
the growing international express business,” said Ken Allen, Chief Executive Officer of DHL Express. “By
entering into a strategic alliance with the market‐leading domestic provider, we can even better meet
the dynamic and growing needs of our Canadian customers by offering highest quality, seamless
integrated shipping solutions that are second‐to‐none.”
DHL Express’ existing domestic management team will remain at Loomis Express to ensure continuity for
all customers. There will be no impact on other DHL businesses and operations in Canada and all other
regions and countries globally. With over 5000 Canadian employees working for DHL Express, DHL
Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea, Canada continues to be an
important market for the company.
Mr. Bédard further noted that similar to the Dynamex and ATS deals, this latest acquisition is asset light.
The transaction is expected to provide TransForce with annualized revenues of more than $275 million.
From the perspective of DHL Express, Mr. Allen added that this alliance strategy has worked very well in
other major markets for DHL customers and he expects the same here in Canada.
An integrated advertising campaign entitled “The Power of 2” is being launched across Canada to
underscore how DHL and Loomis Express will be working together to bring Canadian businesses the
most powerful delivery service in Canada, and the world.
TransForce will hold a conference call for analysts and portfolio managers this morning at 9:30 a.m.
Eastern Time, to discuss this development. Business media are also invited to listen to the call.
Details of Conference Call:
Date: Friday, April 29, 2011
Time: 9:30 a.m. Eastern Time
Call‐in number: 1‐877‐974‐0445
A recording of the call will be available until midnight, May 6, 2011, by dialing 1‐877‐289‐8525 or 416‐
640‐1917 and entering passcode 4437566#.