TransForce Inc. and DHL Express Canada to Offer Fully Integrated Transportation Solutions to Canadian Businesses
Formal agreement to deliver a best-in-class fully integrated international and domestic shipping proposition
(Montréal, Québec and Toronto, Ontario, April 29, 2011) - TransForce Inc. ("TransForce" or "the Company") (TSX: TFI-T) and DHL Express Canada jointly announced today that they have entered into a formal agreement to engage in a 10 year strategic alliance that will result in a fully integrated and innovative domestic and international shipping and logistics offering for Canadian and international businesses. Under the terms of the agreement TransForce, the leader in Canada’s transportation industry, is buying the assets of DHL Express Canada’s domestic business and will take over its domestic operations through Loomis Express, a newly established subsidiary of TransForce. This will allow DHL Express Canada to leverage its core strength and focus exclusively on the Canadian international shipping segment. Under the agreement, Loomis Express and DHL Express Canada will provide Canadian businesses with a completely integrated international and domestic suite of innovative and strongly competitive logistics and shipping services. The transaction, which is still subject to regulatory approval, is expected to close within thirty days.
"This transaction is strategic to TransForce for several important reasons," stated Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc. "This asset purchase will solidify our position as a leading Canadian provider of package and courier services in Canada, plus the DHL partnership opens the door to international transport coverage for our existing customers. TransForce’s pan Canadian infrastructure will deliver expanded Canadian coverage to DHL’s domestic customers, and the combination of the two customer bases adds material revenue, creating greater scale in the market with superior efficiencies. With our recent Dynamex acquisition, we are significantly increasing our density in the Canadian package and courier sector. We are confident of our ability to successfully integrate these businesses as we have done in the past within the TransForce family of companies and firmly believe that this latest purchase will benefit our shareholders. This transaction will not create any changes in our other package and courier businesses as Loomis Express will be a standalone operation."
"Today’s announcement is a further execution of our global strategy to focus on our core competency, the growing international express business," said Ken Allen, Chief Executive Officer of DHL Express. "By entering into a strategic alliance with the market-leading domestic provider, we can even better meet the dynamic and growing needs of our Canadian customers by offering highest quality, seamless integrated shipping solutions that are second-to-none."
DHL Express’ existing domestic management team will remain at Loomis Express to ensure continuity for all customers. There will be no impact on other DHL businesses and operations in Canada and all other regions and countries globally. With over 5000 Canadian employees working for DHL Express, DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea, Canada continues to be an important market for the company.
Mr. Bédard further noted that similar to the Dynamex and ATS deals, this latest acquisition is asset light. The transaction is expected to provide TransForce with annualized revenues of more than $275 million.
From the perspective of DHL Express, Mr. Allen added that this alliance strategy has worked very well in other major markets for DHL customers and he expects the same here in Canada.
An integrated advertising campaign entitled "The Power of 2" is being launched across Canada to underscore how DHL and Loomis Express will be working together to bring Canadian businesses the most powerful delivery service in Canada, and the world.
Conference Call
TransForce will hold a conference call for analysts and portfolio managers this morning at 9:30 a.m. Eastern Time, to discuss this development. Business media are also invited to listen to the call.
Details of Conference Call:
Date: Friday, April 29, 2011
Time: 9:30 a.m. Eastern Time
Call-in number: 1-877-974-0445
A recording of the call will be available until midnight, May 6, 2011, by dialing 1-877-289-8525 or 416-640-1917 and entering passcode 4437566 #.
About TransForce
TransForce Inc. is a North American leader in the transportation and logistics industry. Operating across the United States and Canada, TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service four well-defined segments:
- Package and Courier;
- Less-Than-Truckload;
- Truckload, specialized truckload and dedicated services;
- Specialized Services: waste management, energy sector services, logistics, fleet management and personnel services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit http://www.transforcecompany.com.
About DHL
DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education. DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion Euros in 2010.
Forward-Looking Statements Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
For further information:
TransForce Inc.
Investors:
Alain Bédard
Chairman, President and CEO
TransForce Inc.
(514) 331-4200
Media:
Rick Leckner
MaisonBrison
(514) 731-0000
rickl@maisonbrison.com
Deutsche Post
Claus Korfmacher
011+49-228-182-9917
claus.korfmacher@deutschepost.de