TransForce to Buy DHL Express Canada's Domestic Package Shipping Business
TransForce Inc, a mid-tier Canadian trucker, said today that it will buy the assets of DHL Express Canada's domestic business, to boost its presence in package and courier services. The deal is expected to add more than C$275 million to TransForce's annual revenue, the companies said in a statement.
Under the deal, Loomis Express, a unit of TransForce, and DHL Express Canada will provide Canadian businesses with an integrated international and domestic suite of logistics and shipping services.
TansForce and DHL have also entered into a 10-year strategic alliance, which will open up international markets to TransForce's existing customers.
Deutsche Post's DHL focuses on international express, air and ocean freight, contract logistics and international mail services.
Montreal, Quebec-based TransForce is the only significant Canadian player in a package and courier delivery business dominated by DHL and U.S.-based UPS and FedEx Corp. Canadian truckers have been looking to enter less traditional segments such as collecting garbage and delivering parcels after the recession exposed their reliance on core trucking businesses.
Package and courier and oilfield services were also seen as the other non-traditional acquisition targets that could boost truckers' revenue.