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TFI International acquiring DLS Worldwide
Posted on Wednesday, 16 September 2020 07:34
New York-listed transportation and logistics company TFI International has signed on the dotted line to pick up DLS Worldwide from RR Donnelley & Sons.
Under the terms of the transaction, the buyer will pay USD 225.00 million for the business.
Completion is expected to follow in the next 60 days and remains subject to the green light from regulatory bodies, among others.
TFI believes the activities being purchased via the deal will generate operating income of about USD 22.50 million in the first full year following completion, prior to adjustments for potential synergies, non-cash amortisation of intangible assets and related purchase accounting adjustments.
Following completion, DLS Worldwide will operate within its new owner’s logistics unit.
The target will be renamed TForce Worldwide and will also be known as TFWW.
Commenting on the transaction, TFI chief executive Alain Bédard said it will expand the firm’s US presence and capabilities.
He added: “The asset light model of the DLS business will expand our reach through a significant agent station network and represent a compelling opportunity as our first major US logistics operation focused primarily on LTL.”
Illinois-headquartered DLS was founded in 2006 and provides logistics services through a third-party network of sales personnel and agents.
Its primary transportation modes include less-than-truckload, truckload, freight forwarding, expedited, parcel and intermodal.
TFI International is no stranger to the acquisition trail, having already announced three other purchases in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
The first of these was signed off in April, when it picked up the courier services unit of RR Donnelly & Sons for an undisclosed consideration.
In June, the company agreed to buy Gusgo Transport. No financial details of either deal were disclosed.
TFI’s most recent acquisition closed on 29th June, when it took over MCT Transportation’s assets for USD 9.60 million.
© Zephus Ltd