TFI International divests businesses for $525M USD

Transport and logistics firm, TFI International, has agreed to sell non-asset logistics businesses.

Heartland Express is purchasing CFI’s Truckload and Temp Control and Mexican for $525 million USD. In addition to customary closing adjustments, Heartland Express has paid TFI International an additional $24 million USD for TFI to retain pre-closing accident and workers’ compensation claims.

The CFI TL, TC & MX Business currently operates primarily in the US-based Conventional TL operating segment of TFI’s Truckload segment and provides comprehensive truckload service offerings, including time definite dry van truckload, longhaul and short-haul freight transportation, reefer transportation and Mexico-based non-asset logistics

The CFI TL, TC & MX Business has ~2,000 tractors, ~7,800 trailers and ~2,800 employees. CFI’s Mexican logistics business has a network of nearly 200 C-TPAT certified Mexico carrier partners.

TFI is keeping the Dedicated and US Logistics (non-asset US based logistics services provider) divisions.

“We are incredibly pleased to announce this strategic transaction which is tremendously beneficial for all involved – a true win-win-win for TFI International, Heartland, and of course the CFI TL, TC & MX Business itself, which is a strong cultural fit with Heartland and will have expanded opportunities to prosper with a leader in asset-based trucking,” said Alain Bédard, Chairman, President and Chief Executive Officer of TFI.

“For TFI, the decision to sell was reached following a thorough evaluation of our portfolio, and aligns perfectly with our longstanding focus on driving cash flow and ROIC. Specifically, by allowing TFI to concentrate its US operations on higher-return LTL, asset-light logistics, and specialised truckload, this transaction will reduce our capital intensity, with some of the proceeds used to pay down debt in the near term and over time redeployed with the objective of generating higher returns. We thank the CFI teams that are now joining Heartland for their tremendous contributions to TFI over the years and wish them all the very best in the years ahead.”

Heartland Express CEO and Chairman, Michael Gerdin, said: “We are proud to welcome the CFI team to our growing family of companies as soon as the transaction closes. CFI will continue to operate from Joplin, Missouri, under its legendary brand and existing leadership. Together, our companies will offer customers the nation’s third largest asset-based, irregular route truckload capacity and drivers unparalleled opportunity. We have appreciated working with the teams from TFI International and CFI to reach this highly strategic and commonsense transaction for the benefit of all parties.”