Vitran announced today that it will sell its US LTL business, and will now focus on strengthening its Canadian operations.
The company agreed to sell the US operations to a company owned by Ambassador Bridge - and multiple trucking company - owner Matthew Moroun for $2 million.
"We are pleased to have reached an agreement to sell our US LTL business," said William S. Deluce, Vitran's interim president and CEO. "For the last several years, Vitran has invested substantial time and capital to improve its U.S operating results. While we believe these efforts have made Vitran's US LTL business a better operating company, they did not result in financial results that are acceptable to management or the Board.
"With the assistance of our financial advisors, we have evaluated a wide range of strategic alternatives over the last five months," Deluce added. "We are pleased to have agreed upon a plan that we believe gives Vitran's US LTL employees and customers the best chance to prosper while also preserving value for all of Vitran's stakeholders."
The transaction is expected to close within 10 business days.
"We are also excited about the positive impact this transaction will have on Vitran's Canadian LTL business," Deluce said. "Over the last 25 years, Tony Trichilo and his team have built one of Canada's premier providers of LTL services. This model has resulted in consistent profitability and cash flow generation. With this transaction, we are now excited to be solely focused on the Canadian business, which currently has cash of approximately $22 million."
