Montreal-based TFI International is making good on comments made during its first quarter earnings call that it had cash for some “tuck-in” acquisitions.
On Monday, May 1, TFI International announced not only that it had agreed to acquire Siemens Transportation Group in Canada but also that it had completed its acquisition of Hot Line Freight Systems in the U.S. Both are less-than-truckload carriers.
Terms of the transactions were not disclosed.
Pending TFI International acquisition
Siemens Transportation Group, based in Saskatoon, Saskatchewan, is mostly an LTL operation. It has 15 terminals in North America, with 11 in Canada and four in the U.S. The company generates annual revenues of about $150 million Canadian.
Doug Siemens, president of the Siemens Transportation Group, is expected to continue to manage the business as part of TFI International’s LTL segment, reporting to Executive Vice President Chris Traikos.
The transaction is subject to regulatory approval.
Siemens Transportation Group was founded in 1962 by Erwen Siemens as Kindersley Transport Ltd., according to its website. It has seven trucking divisions. In addition to the LTL division, there are international truckload, international flat deck, ground courier and warehouse distribution divisions.
Kindersley Transport Ltd. is the most well-known company within the Siemens Transportation Group, according to the University of Regina’s online The Encyclopedia of Saskatchewan. Other members of the Siemens Group include PMK Logistics, Edge Transportation, HWT, Quill Transport Ltd., Triangle Freight Services, Mid-Sask Ag Services Ltd., Creekbank Transport of Toronto, Hi-Tech Express Inc. of Minneapolis, and Tiger Courier.
Acquisition of Wisconsin’s Hot Line completed
TFI International has completed its acquisition of West Salem, Wis.-based Hot Line Freight Systems.
The acquisition brings TFI International a network of 18 terminals, eight of which are company owned. The terminals stretch from Omaha, Neb., in the west to Grand Rapids and Kalamazoo, Mich., and Elkhart, Ind. in the east, according to its website. St. Cloud, Minn., is the farthest north terminal and the terminal network reaches as far south as the Quad Cities on the Iowa-Illinois border.
The business generates about $300 million U.S. annually, according to the TFI announcement. The business has a strong focus on expedited one- to two-day LTL service across the Midwest and a nationwide over-the-road division concentrating on high-value and “white-glove” freight, according to the announcement.
Paul Burgmeier, former CEO of Hot Line, will continue to manage the business as part of TFI’s less-than-truckload segment, reporting to Executive Vice President Rick Hashie.
Hot Line was founded in 1988 by Larry Johnson and Rob Burgmeier.
Poised for acquisitions
During TFI International’s first quarter earnings report, TFI President and CEO Alain Bédard said his company’s cash flow and strong capital position allows it to invest even through uncertain times.
“We are pleased to be expanding our LTL footprint in both Canada and the U.S. with these two LTL acquisitions,” Alain Bédard, chairman, president, and CEO of TFI International, said in the company acquisition announcement. “(Siemens Transportation Group)’s impressive family-run approach has attracted a loyal customer base across diverse industries, and its compelling geographic presence and well-maintained equipment strategically complement our growing network. Hot Line is another highly attractive acquisition, with well-run operations and a strong presence in the midwestern U.S. that will further bolster our LTL presence while allowing us to ramp its cross-border business.”
TFI International Inc. operates across the United States and Canada through its subsidiaries. TFI is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol TFII. LL
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