RBC Capital Markets, BofA Advise Transport America Buy
TransForce announced that a wholly owned subsidiary of TransForce has entered into an agreement with Goldner Hawn Johnson & Morrison to acquire the entire share capital of its portfolio company, Transport America.
The transaction is subject to customary closing conditions and should close near the end of June 2014. The purchase price represents a total enterprise value of approximately $310 million, including the assumption of Transport America’s debt of about $150 million.
TransForce will finance the transaction through its existing credit facility, and will continue to maintain a strong balance sheet and financial flexibility post-closing. This acquisition is expected to generate annual total revenues of approximately $350 million.
RBC Capital Markets is acting as exclusive financial advisor to TransForce on the transaction. Bank of America has acted as exclusive advisor to Transport America on this transaction.
“This acquisition will immediately provide TransForce with a critical mass in the highly fragmented TL sector in the United States and we stand to benefit from Transport America’s extensive geographic footprint and longstanding relationships with blue chip customers. Transport America is an efficient, wellmanaged company that generates solid operating margins. We expect this transaction to be immediately accretive to earnings and to provide a sound return on investment to the benefit of our shareholders,” said Alain Bédard, chairman, president and CEO of TransForce.
The company will continue to be branded as Transport America and is excited to be the platform for growth for TransForce in the U.S. truckload market.
Eagan, MN-based Transport America provides an integrated offering of dryvan TL transportation services across the U.S. It offers short and long haul freight carriage, shipping services, and international and intermodal services through various partners. It operates approximately 1,500 tractors and about 4,400 trailers.
TransForce operates across Canada and the U.S. through its subsidiaries.