Vitran Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), a North American LTL transportation and Supply Chain firm, today announced the intended asset acquisition of Milan Express’ LTL business. Milan’s regional LTL business operates 34 facilities in central and southeastern United States. For the year ending December 31, 2010, Milan’s LTL operation generated revenues of $70 million. Upon closing, Vitran expects this transaction to be immediately accretive to its earnings.
“The acquisition of the Milan Express LTL operation is another critical component in Vitran’s strategy of establishing a unique regional LTL network that serves the entire North American market,” stated Vitran President and Chief Executive Officer Rick Gaetz. “The LTL operations of Milan Express are well run with a strong presence and reputation in their market. This transaction will provide added density in the five central states we already cover and expands a quality service offering to the five new states of Alabama, Georgia, Mississippi, North Carolina and South Carolina. We look forward to working with our new employees and providing a new expanded quality service offering to the customers of Milan and Vitran.”
Milan Express’ LTL operation was operated by its founder Tommy Ross and his son John. Tommy stated, “Since 1969, our family has been involved in regional LTL freight transportation. We were committed to providing customers with the most steady and reliable service in our market. The decision was not easy for us. We considered many options, but we believe this transaction with Vitran is the right opportunity. We are very pleased with the new Vitran relationship as it not only offers stability to the majority of our employees, but I feel it gives both our employees and our customers a platform to grow in the months ahead.”
The transaction is expected to close on February 19, 2011.