The deal, including the assumption of Vitran’s outstanding net debt of about US$29 million, is worth about US$128 million. Vitran’s shares are being acquired by 2398946 Ontario Inc., an affiliate of Manitoulin Transport Inc.
"We are extremely excited to join with Manitoulin Transport to leverage the operational strengths of both companies,” William Deluce, Vitran's interim president and CEO, stated in a news release. “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."
The announcement follows another recent acquisition. In November, Manitoulin revealed it was purchasing Smooth Freight Ltd. of Brandon, Man.
Manitoulin Transport, established in 1953, is a family-run company headquartered in Gore Bay on Manitoulin Island. As a single-source carrier, Manitoulin offers a wide array of trucking services including expedited less-than-truckload and truckload, trans-border, intermodal, private fleet, guaranteed service, temperature-controlled, dangerous goods and supply chain management.