Trucking company Vitran Corp. has acquired Pjax Freight System, a Pittsburgh-based freight carrier, for $132-million in a deal to expand the Canadian company's network in the United States.
Toronto-based Vitran said Monday it will pay $80.3-million in cash for Pjax plus $26.5 million of assumed debt, $13.2-million in stock and holdbacks totalling $12-million payable over the next 365 days.
"Following two successful acquisitions over the past 16 months - Chris Truck Line and Sierra West Express - we have continued to focus on further extending our geographical footprint," Vitran president and chief executive Rick Gaetz said in a statement.
"This important acquisition expands our reach into the all-important Atlantic Coast as we continue to press forward with our goal of complete (less-than-truckload) coverage throughout both Canada and the United States, and a strong cross-border business to complement country-wide coverage on both sides of the border."
Pjax operates from 22 terminals, 13 of which are owned and were acquired in with the transaction. The company's estimated revenue was $175-million for the 12 months ended Sept. 30.
The acquisition will be accretive to Vitran's earnings by 22 cents per share over the next 12 months, the company said.
Vitran also said it has expanded a syndicated credit facility to $160-million, consisting of an $80-million term facility, a $60-million revolving facility and an additional $20-million acquisition revolver.
Vitran provides transportation services including less-than-truckload shipping, logistics, truckload, and freight brokerage services.
Last week the firm cut its annual profit forecast to a range of $1.48 to $1.52 a share, from $1.63 to $1.73 per share, citing higher labour costs and a weaker U.S. outlook.