Manitoulin Transport has reached an agreement to acquire Canadian LTL firm Vitran Corp.
The deal includes all the outstanding shares of Vitran at a price of US$6 per share.
The deal, including the assumption of Vitran's outstanding net debt of about US$29 million, is worth about US$128 million. The $6 share price represents a 10.3% premium over the share's closing today.
"We are extremely excited to join with Manitoulin Transport to leverage the operational strengths of both companies," announced Vitran's interim president and CEO, William Deluce. "Together Vitran and Manitoulin Transport will become a formidable and diversified supplier for customers requiring a full suite of transportation and supply chain services in Canada and the United States. We are extremely pleased that this transaction will provide our shareholders significant and immediate value for their shares. We thank each and every one of our Vitran employees for their efforts and steadfast commitment to Vitran and wish them nothing but the best in the future."