(Montreal) Trucking specialist TFI International acquires a company specializing in the transport of food-grade liquid and dry goods by tank truck.
The Montreal company announced on Tuesday the acquisition of Vedder Transportation, a company based in British Columbia. The amount of the transaction was not disclosed.
With this acquisition, TFI increases its presence in Western Canada in this industry segment to become “the leading Canadian provider” of food-grade tank truck transportation service, explains its president and CEO, Alain Bédard, in a press release.
Vedder operates in British Columbia, Alberta, Saskatchewan and Manitoba. The company generates annual revenues of nearly $80 million.
The transaction occurs in a difficult context for the industry. At the beginning of August, Mr. Bédard spoke of a “trucking recession”. “The year 2022 was a celebration. The year 2023 is the day after. »
With the end of confinement, consumers are thirsty for experiences such as travel and outings. They have less appetite for consumer goods. This left retailers with too much inventory, which slowed demand for trucking delivery services.
In this context, he mentioned that the market for potential acquisitions was strong. The company estimates that it will spend US$500 million on acquisitions and share buybacks.
TFI stock fell $3.69, or 1.98%, to $183.24 on the Toronto Stock Exchange around noon.
Company in this story: (TSX: TFII)
