TransForce Inc., a Saint-Laurent, Québec-based provider of transportation and logistics services, acquired the shares and subsidiaries of Velocity Express LLC, a Stafford, Texas-based company operating in the same industry sector. The terms of the transaction were not released. Velocity Express has been a portfolio company of US private equity firm Comvest Partners. TransForce is backed by Fonds de solidarité des travailleurs du Québec (FTQ).
TransForce Completes Acquisition of Velocity Express
Montreal, Quebec, February 4, 2013 – TransForce Inc. (TSX: TFI), a North American leader in the transportation and logistics industry, is pleased to announce that it has completed the acquisition of all the shares of Québec(“Velocity”) and its subsidiaries.
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 and to be accretive for TransForce.
“This asset-light acquisition further enhances TransForce’s density and capabilities in the same-day North American package and courier market. We welcome Velocity’s employees and independent contractors to the growing TransForce family. The combination of our skills and know-how creates a more powerful service offering in this market niche. We expect the transaction to provide a sound return on investment to the benefit of our shareholders,” said Alain Bédard, Chairman, President and Chief Executive Officer of TransForce.
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