English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

XPO sells truckload asset to reduce debt

GREENWICH, CT: October 27, 2016. - XPO Logistics has sold its truckload business to Canadian logistics company TransForce for US$558 million in cash in order to reduce debt. As of June 30, 2016 the company had debt and long-term liabilities of US$6.7 billion.

The divested truckload operation encompasses approximately 3,000 tractors, 7,500 trailers and 29 locations that were part of XPO's October 2015 acquisition of Con-way.

The company said it would continue to offer full truckload services in North America and Mexico via its brokerage network.

Transport AmericaAccording to TransForce, the acquisition is expected to generate annual revenue of US$530 million and an EBITDA of US$115 million in 2016. Combined with the company's current U.S. truckload business annual revenue is forecast at US$850 million.

XPO chairman and CEO Bradley Jacobs said the company had sold its truckload business to concentrate on contract logistics, truck brokerage, less-than-truckload, last mile, intermodal, drayage, expedite and managed transportation.

Alain Bédard, TransForce chairman, president and CEO said the purchase complements the company's existing capabilities and provides access to a diversified and blue-chip customer base: "We have acquired a high quality truckload business with a rich heritage and demonstrated solid operating and financial performance. We believe we are investing into the truckload space at a critical time and are well-positioned to benefit from future growth opportunities," he added.

TransForce has financed the XPO acquisition using an existing revolving credit facility coupled with a new CA$500 million loan underwritten by the National Bank of Canada and Royal Bank of Canada. The company reported a Q2 net profit of US$39.1 million on revenue of US$978 million. Transport America (above) is a TransForce truckload subsidiary based in Minnesota.

More News

Written on 17/11/2017, 23:08
qantas-plans-mustard-power-for-trans-pacificSYDNEY: November 18, 2017. Qantas is to operate the world's first bio-fuel B787-9 flight between Melbourne and Los Angeles next year based on Brassica...
Written on 17/11/2017, 20:43
yusen-buys-tibbett-logistics-in-romaniaWOODFORD GREEN, UK: The Keswick Enterprises Group is selling its Romanian Tibbett Logistics subsidiary to Amsterdam-based Yusen Logistics (Europe). The...
Written on 17/11/2017, 19:33
walmart-and-j-b-hunt-to-test-teslaLOWELL, AR: November 17, 2017. U.S. logistics company J.B. Hunt Transport Services has made multiple reservations at US$5,000 each for new Tesla 'Semi'...
Written on 14/11/2017, 17:49
port-record-prompts-savannah-rail-expansionSAVANNAH, GA: November 13, 2017. The Georgia Ports Authority (GPA) has approved a further US$42.27 million for its US$128 million Mason Mega Rail...
Written on 13/11/2017, 22:01
freightweek-news-update-week-46ASHBY-DE-LA-ZOUCH, UK: November 16, 2017. CEVA Logistics has added to its investment in pharmaceutical logistics with the opening of a fully refurbished...
Written on 13/11/2017, 20:56
amerijet-adds-to-sales-network-and-b767-fleetMIAMI: November 13, 2017. Amerijet International is due to take delivery of another B767-300 from Cargo Aircraft Management, a subsidiary of the...
Written on 10/11/2017, 21:36
turkish-cargo-q3-revenue-jumps-40-percentISTANBUL: November 09, 2017. Turkish Airlines has reported Q3 revenue of US$3.6 billion, an operating profit of US$1.07 billion and a net profit of...
Written on 10/11/2017, 18:00
ironhorse-joins-fedex-on-mexico-borderSANTA TERESA, NM: November 08, 2017. Ironhorse Resources, parent company of five shortlline U.S. railroads including the Santa Teresa Southern Railroad...
Written on 09/11/2017, 22:02
four-logistics-hubs-for-heathrow-s-third-runwayLONDON HEATHROW: November 08, 2017. In anticipation of government approval to build its third runway, Heathrow has published a list of 65 so-called...
Written on 09/11/2017, 01:25
fedex-signs-atr-freighter-orderTOULOUSE, November 08, 2017. FedEx Express has signed a contract with ATR to purchase 30 ATR 72-600F freighters plus 20 options. The price was not...
Written on 08/11/2017, 20:04
astral-aviation-working-for-africa-s-progressABIDJAN/NAIROBI: November 08, 2017. The Green Climate Fund (GCF), set up as a result of the UN Paris Agreement, has partnered with the African Development...
Written on 07/11/2017, 22:53
maersk-maneuvers-for-logistics-management-futureCOPENHAGEN: November 07, 2017. A.P. Møller – Mærsk has reported a 14 percent rise in Q3 revenue to US$8 billion; EBITDA earnings of US$978 million; and...
Written on 07/11/2017, 21:34
lng-to-power-cma-cgm-orderMARSEILLE: November 07, 2017. CMA CGM says its order for nine 22,000 TEU containerships with the first due for delivery in 2020 will be powered by...
Written on 07/11/2017, 20:22
ups-joins-blockchain-allianceATLANTA: November 07, 2017. UPS has joined the Blockchain in Trucking Alliance (BiTA), a forum for the development of blockchain technology standards and...
Written on 06/11/2017, 20:46
freightweek-news-update-week-45DUBAI: November 12, 2017. Emirates has ordered 40 B787-10 aircraft valued at US$15.1 billion (AED 55.4 billion) for delivery beginning in 2022. Read...
Written on 03/11/2017, 22:27
turkish-cargo-benefits-from-envirotainer-accreditationSAN FRANCISCO, November 01, 2017. The Bio Supply Management Alliance (BSMA), a community of supply chain professionals in the biotech, biopharma, and...
Written on 03/11/2017, 21:16
etihad-to-cancel-dallas-serviceABU DHABI: November 02, 2017. Following American Airlines' decision to end code share agreements with Qatar Airways and Etihad Airways next year, Etihad...
Written on 03/11/2017, 14:37
new-crowley-link-between-north-carolina-and-central-americaWILMINGTON, NC: November 02, 2017. Crowley Maritime will begin a weekly, fixed-day, FCL and LCL service from the Port of Wilmington to Guatemala and...
Written on 03/11/2017, 14:29
mercedes-fleet-arrives-in-time-for-angola-s-presidentLEIPZIG: November 01, 2017. Volga-Dnepr Airlines used a two-tier racking system developed for its AN-124-100 freighter fleet to deliver 30 Mercedes on a...
Written on 31/10/2017, 22:37
ecs-group-and-ram-cargo-sponsor-new-jersey-heroesCASABLANCA: October 31, 2017. Royal Air Maroc (RAM) Cargo has launched a new personal effects service on its flights from the U.S. and Canada via...

- powered by Quickchilli.com -