TransForce Announces Acquisition of Velocity Express
Acquisition further enhances TransForce’s presence in the same-day North American package and
Montreal, Quebec, January 17,2013 – TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, is pleased to announce that it has entered into a definitive agreement and plan of merger to acquire all the shares of Velocity Express (“Velocity”) and its subsidiaries.
Headquartered in Stafford, Texas, Velocity operates a network of more than 80 locations across the United States and Western Canada, employing a combined total of approximately 2,600 staff and independent contractors. Velocity is an important provider of customized, same-day regional delivery solutions, offering an extended range of services in delivering packages of any size.
The transaction is expected to generate annual revenues of approximately $160 million for TransForce and should close by the end of January 2013.
“The acquisition of Velocity further enhances TransForce’s density in the same-day North American package and courier market and reflects our disciplined and selective approach in building our network. A trusted provider of customized, sameday regional delivery services in the United States for nearly 20 years, and a well-established player in Western Canada. The transaction will be accretive for TransForce and will provide a sound return on investment to the benefit of our shareholders,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.