TFI Buys Tank Truck Specialist Vedder in Ninth Deal of 2023
[Stay on top of transportation news: Get TTNews in your inbox.]
TFI Worldwide acquired tank transport specialist Vedder Transportation Group, the corporate mentioned, in what was its ninth acquisition to date in 2023.
Montreal-based TFI, which ranks No. 4 on the Transport Matters High 100 checklist of the most important for-hire carriers in North America, didn’t disclose the phrases of the deal.
Vedder, which specializes within the tank truck transportation of food-grade liquids and dry bulk commodities, is headquartered in Abbotsford, British Columbia, and fills a gap in TFI’s Western Canadian footprint. Per a TFI launch, Vedder was one of many first corporations in Western Canada to make use of tanker vehicles to move liquid food-grade merchandise. Vedder, which was based in 1956, now has operations that span from its residence province east to Manitoba.
Vedder has greater than 155 tractors and practically 300 trailers along with warehousing and upkeep and restore amenities, a food-grade wash rack and railcar transload functionality, TFI mentioned. Vedder generates annual revenues in extra of C$80 million ($58.5 million).
“For a few years, TFI Worldwide has been a number one supplier of dependable, protected and cost-effective tank truck companies to the liquid and dry bulk food-grade market in Jap Canada,” mentioned TFI CEO Alain Bédard. “With the acquisition of Vedder, we add the premier supplier of such companies in Western Canada together with a community of strategically situated amenities, making TFI the premier Canadian coast-to-coast supplier of food-grade tank truck transportation companies.”
The most recent deal is a part of TFI’s technique of discovering tuck-in acquisitions, mentioned Kevin Chiang, CIBC World Markets institutional fairness analysis director. The acquisition is the second for TFI within the again half of 2023; it acquired JHT Holdings in August. Nice Prairie, Wis.-based JHT transports Lessons 6 by means of 8 vehicles from manufacturing and last meeting crops to sellers and prospects.
These acquisitions comply with a stretch throughout which TFI inked seven offers within the first half of 2023 in the USA and Canada. Throughout TFI’s first-quarter 2023 earnings name, Bédard mentioned TFI is strategically increasing its geographic attain and capabilities. He famous that usually accepted modus operandi for mergers and acquisitions is to purchase on dangerous information and promote on excellent news and mentioned that the declining freight market has produced loads of the previous. “We love this setting for M&A,” he mentioned.
TFI expects to spend $250 million on M&A within the second half of 2023. The corporate’s prime government mentioned that by the tip of 2023 or initially of 2024, a giant deal could be unveiled.
Additional offers are anticipated in 2024, as the corporate has mentioned it expects to spend $300 million-$400 million a yr on M&A going ahead, Chiang mentioned.
Need extra information? Hearken to right this moment’s day by day briefing beneath or go right here for more information:
