Dive Brief:
- TFI International has agreed to acquire Canada-based Siemens Transportation Group and has completed the acquisition of Wisconsin-based Hot Line Freight Systems, the company announced Monday. The LTL deals on both sides of the border came days after CEO Alain Bédard teased upcoming M&A in an earnings call.
- Siemens, a family-owned, mostly LTL carrier, has 15 terminals and generates more than $110 million in annual revenues. Hot Line is a specialized LTL carrier focusing on one- to two-day service across the Midwest and nationwide long haul for white-glove freight. It has 14 terminals and $30 million in annual revenues.
- Terms of the deals were not disclosed, and the Siemens acquisition is subject to regulatory approval.
Dive Insight:
Montreal-based TFI plans to spend at least $300 million on M&A and buybacks this year, Bédard, who is also president and chairman, said on the call Wednesday.
Without disclosing Siemens’ name to analysts, Bédard touted the first acquisition in Canada as “a fantastic deal.” Another one in the country is expected to be finalized later this year, he said on the call.
Saskatchewan-based Siemens’ impressive, family-run approach has attracted a loyal customer base across diverse industries, Bédard said in the announcement of the deals Monday. The company was founded in 1962.
“Its compelling geographic presence and well-maintained equipment strategically complement our growing network,” he said.
Hot Line, founded in 1988, was another highly attractive acquisition because of a strong presence in the midwestern U.S. “that will further bolster our LTL presence while allowing us to ramp up its cross-border business,” Bédard said.
Both carriers will remain under their current management. Doug Siemens will manage Siemens as part of TFI’s LTL segment, reporting to EVP Chris Traikos. Paul Burgmeier will manage Hot Line and report to EVP Rich Hashie.
The ongoing M&A moves come as all eyes remain focused on a potential TFI acquisition of ArcBest.
Conversations remain ongoing between the carriers, but a “storm” of union negotiatiations at ArcBest’s ABF Freight and TFI’s TForce Freight is delaying any immediate deal, Bédard said on the call.
