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 25/09/2017, 22:32
qatar-airways-takes-delivery-of-first-b747-8-freighterEVERETT, WA. September 25, 2017. Qatar Airways has taken delivery of its first B747-8 freighter and ordered two more plus four B777-300ERs for a total...
Written on 22/09/2017, 21:44
dhl-begins-annual-volunteer-seasonBONN: September 20, 2017. Deutsche Post DHL has begun its seventh annual global 'Volunteer Day' program that ends on October 01 to encourage its more than...
Written on 21/09/2017, 18:41
freightweek-news-update-week-38LE HAVRE: September 22, 2017. Bolloré Logistics has opened a second multimodal hub at the Pont de Normandie to manage logistics flows throughout France's...
Written on 21/09/2017, 18:20
1-77-trillion-added-value-in-iot-logistics-by-2025BONN/SHANGHAI: September 20, 2017. DHL Supply Chain has introduced a trial Narrowband Internet of Things (NB-IoT) application to improve yard management...
Written on 21/09/2017, 18:10
first-efl-charter-to-columbus-from-colomboCOLOMBO, Sri Lanka: September 20, 2017. Fashion forwarder Expo Freight has shipped 100 tonnes of garments for Ohio-based retailer L Brands on a Qatar...
Written on 21/09/2017, 18:08
geodis-delivers-massive-power-projectDEL SUR, Bolivia: September 20, 2017. Geodis is in the process of delivering 14 industrial gas turbines, 11 steam turbines and additional Siemens...
Written on 21/09/2017, 17:59
new-silk-way-rail-linkHONG KONG: September 20, 2017. Tigers, a supply chain management company, has launched 'Tiger Rail' with a 16-day transit time to and from Duisburg,...
Written on 16/09/2017, 03:41
cma-cgm-reports-us-472-million-q2-ebitMARSEILLE: September 15, 2017. CMA CGM has reported a 56.8 percent increase in second quarter 2017 revenue to US$5.55 billion and a net income of US$219...
Written on 14/09/2017, 19:01
brucargo-plans-multimodal-cloud-with-nxtportANTWERP/BRUSSELS: September 14, 2017. Data platform NxtPort and Air Cargo Belgium's BRUcargo cloud-based community have signed an MoU to develop a digital...
Written on 13/09/2017, 22:03
kuehne-nagel-launches-lithium-battery-logisticsSCHINDELLEGI, Switzerland: September 13, 2017. Kuehne + Nagel has launched 'KN Battery Chain' – a supply chain solution for shipping large lithium...
Written on 13/09/2017, 16:36
cargo-re-starts-at-miaMIAMI: September 13, 2017. Miami International Airport expects a return to normal flight operations by the weekend of September 16/17 following Hurricane...
Written on 12/09/2017, 21:07
wisetech-acquires-air-and-ocean-rate-managementSYDNEY: September 12, 2017. Logistics software group WiseTech Global has acquired two rate management companies: Netherlands-based Cargoguide covering the...
Written on 12/09/2017, 20:05
40-million-investment-for-dunkerqueDUNKERQUE: September 12, 2017. The Dunkerque Multibulk Terminal (DMT) is investing €40 million over the next two years to produce construction materials...
Written on 12/09/2017, 19:13
rickmers-group-thrown-a-lifebeltHAMBURG: September 11, 2017. The Zeaborn Group and Hamburg shipowner Bertram Rickmers are to acquire the Rickmers Group's global ship management business,...
Written on 11/09/2017, 20:50
freightweek-news-update-week-37FELIXSTOWE, UK: September 15, 2017. Construction company VolkerFitzpatrick has won a contract at the Port of Felixstowe to design and construct 13...
Written on 11/09/2017, 15:16
danes-sell-belgium-terminal-to-chinaTHE HAGUE: September 11, 2017. APM Terminals, part of the A.P. Moller - Maersk Group, is to sell its 76 percent ownership of Belgium's second largest...
Written on 08/09/2017, 18:42
hna-to-spend-another-us-1-billion-on-logisticsSINGAPORE: September 07, 2017. HNA Belt and Road Investments Singapore, a subsidiary of HNA Holding Group (HK Group), has made an unsolicited offer of...
Written on 07/09/2017, 21:21
american-cancels-flights-ahead-of-irmaDALLAS/FORT WORTH: September 07, 2017. American Airlines (AA) has canceled 2,405 flights between today and September 11 as a result of Hurricane Irma, due...
Written on 07/09/2017, 19:39
china-merchants-acquires-brazil-container-terminalXIAMEN, China: September 04, 2017. China Merchants Port Holdings (CMPort), owned by China's state-owned Assets Supervision and Administration Commission...
Written on 06/09/2017, 14:08
freightweek-news-update-week-36NEW JERSEY, September 07, 2017. The 14,400 TEU capacity CMA CGM Theodore Roosevelt has became the largest container ship to pass under the raised Bayonne...

- powered by Quickchilli.com -