Dive Brief:
- TFI International acquired Hercules Forwarding, a cross-border LTL provider with headquarters in Vernon, California, and New Westminster, British Columbia, the freight giant announced Monday.
- Hercules has more than 210 trucks and nearly 600 trailers across 31 terminals, according to the announcement. The previously family-owned company generates more than $100 million in annual revenues, TFI said. Terms of the deal were not disclosed.
- “This bolt-on acquisition fortifies our US LTL portfolio while adding cross-border LTL into Canada, creating a partner for our Canada-to-US shipments while offering synergy opportunities on both sides of the border,” TFI Chairman, President and CEO Alain Bédard said in the announcement.
Dive Insight:
Cross-border trucking has been a bright spot in an otherwise challenging freight market for carriers over the past year or so.
TFI’s acquisition of Hercules is a strategic investment in hopes of taking a larger share of that cross-border business, similar to Estes Express Lines’ purchases of several Yellow Corp. terminals near the border.
“Hercules’ impressively low claims ratio and skill at serving multiple premium freight markets moving high-value cargo across the US and Canada aligns well with our focus and operating philosophy,” Bédard said in the announcement.
The Hercules deal also strengthens TFI’s LTL segment at a time when the conglomerate is openly considering spinning off its recent Daseke acquisition and other truckload assets into a separate pure-play TL carrier.
Hercules, a non-union carrier focused on direct shipping, seeks to provide high-quality, damage-free service across industries. Its customers include retail; HVAC and construction; automotive; industrial; third-party logistics; and food and beverage companies.
Hercules President Marty Burnham and CFO Melanie Burnham will continue to lead the business as it joins TFI’s LTL unit, according to TFI.
