- Heartland Express, Inc. HTLD has agreed to acquire the Contract Freighters non-dedicated U.S. dry van and temperature-controlled truckload business and CFI Logistica operations in Mexico (CFI) from TFI International Inc TFII for a cash enterprise value of $525 million.
- Joplin, Missouri-based CFI provides dry van and temperature-controlled truckload services to major customers throughout the U.S. and into Mexico and Canada.
- CFI owns its headquarters, which covers approximately 200 acres in Joplin, along with six locations, which will be acquired by Heartland and bring the total to 30 owned terminals across the U.S. and Mexico.
- CFI Dedicated or CFI Logistics U.S. brokerage operations are not part of the transaction.
- For the twelve months ended June 30, 2022, CFI generated ~$575 million in total revenue.
- On completion, Heartland Express will be the 8th largest truckload fleet and 3rd largest irregular route, asset-based truckload carrier in the U.S., with estimated annual pro forma total revenue of ~$1.3 billion and annual operating cash flow of ~$260.0 million, and total assets nearing $2.0 billion as of June 30, 2022.
- HTLD expects the deal to be immediately accretive to earnings, excluding transaction costs.
- The company plans to fund the transaction and related expenses with existing cash and borrowing under a new $550 million loan agreement.
- Heartland Express held cash and equivalents of $171.9 million as of June 30, 2022.
- Price Action: HTLD shares are trading higher by 1.11% at $16.24 and TFII down by 2.17% at $99.82 on the last check Monday.
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