MONTREAL — Trucking company TFI International Inc. has signed a deal to sell CFI’s truckload, temp control and Mexican non-asset logistics businesses to Heartland Express Inc. for US$525 million.
TFI chairman and CEO Alain Bédard says the decision to sell followed a thorough evaluation of the company's portfolio.
TFI will keep its dedicated and U.S. logistics businesses.
Bédard says the transaction will reduce the company's 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.
The deal has been unanimously approved by the boards of TFI and Heartland and is expected to close in the third quarter of 2022.
It is subject to customary closing conditions, including regulatory approvals.
This report by The Canadian Press was first published Aug. 22, 2022.
Companies in this story: (TSX:TFII)
The Canadian Press