TFI International, a North American leader in the transportation and logistics industry, recently announced it has agreed to acquire Daseke, one of the leading flatbed and specialized transportation and logistics companies in North America, for $8.30 in cash per common share.
This deal is subject to customary closing conditions, including regulatory approvals, and is expected to close during the second quarter of 2024. Management expects the deal to be EPS-neutral to TFI International in 2024 and accretive by at least $0.50 per share in 2025 based on current market conditions.
Daseke’s operations include about 4,900 tractors, 11,000 flatbed and specialized trailers, and one million square feet of industrial warehousing space, offering major shippers comprehensive transportation and logistics solutions. And after the merger, Daseke will continue operating its portfolio of brands as part of TFI’s Truckload segment.
On a pro forma basis, the Truckload segment is expected to generate about US $3.6 billion in annual total revenue, operate one of the largest comprehensive truckload businesses in Canada, and be one of the most significant participants in the less-commoditized specialized equipment truckload marketplace in the United States. Over the medium term, TFI expects to evaluate the potential benefits of separating into two distinct public companies – one comprising the truckload segment and one comprising the LTL, P&C, and logistics segments.
The merger agreement was unanimously approved by the Boards of Directors of TFI International and Daseke. And the deal is subject to approval of holders of a majority of the outstanding shares of Daseke common stock and other customary closing conditions, including regulatory approval.
The closing is not conditioned on financing. The total enterprise value of the transaction is approximately $1.1 billion, including the merger consideration for the common stock, retirement of Daseke’s outstanding preferred stock, payoff or assumption of outstanding debt, net of cash, and estimated transaction fees and expenses. TFI International expects to fund the transaction using cash balances and available financing sources and seeks to retain in place certain of Daseke’s existing equipment financing arrangements.
KEY QUOTES:
“This attractive acquisition is highly complementary to our existing operations and scales our Truckload segment into a leading North American truckload transportation and logistics business. Daseke’s deep expertise in servicing a broad portfolio of specialized and industrial end markets such as high-security cargo, agriculture, manufacturing, and construction, is critical given the relative strength of specialized market dynamics today. We extend a warm welcome to the Daseke team.”
“This acquisition also advances our strategic consideration of creating a unique opportunity for shareholders to separately invest in a specialized truckload business and in an LTL, P&C and Logistics business. Our immediate focus will be on improving Daseke’s financial results, with the strategic consideration to follow and be ongoing.”
- Alain Bédard, Chairman, President and Chief Executive Officer of TFI International
