MN Company Poised For IPO Is Sold For $310M Instead
Eagan-based Transport America announced Monday that it will be purchased by Canadian company TransForce, Inc., for $310 million, a price that includes the assumption of about $150 million of the Minnesota company’s debt.
Transport America provides van and truck transportation services across the country, such as freight carriage, shipping services, and international services through its various partners. The company, founded in 1984, includes 12 terminals throughout the country, employs a staff of 2,000 people, and operates about 1,500 tractors and 4,400 trailers.
Montreal-based TransForce is a publicly traded transportation and logistics company.
“This acquisition will immediately provide TransForce with a critical mass in the highly-fragmented [truckload] sector in the United States and we stand to benefit from Transport America’s extensive geographic footprint and longstanding relationships with blue chip customers,” TransForce President and CEO Alain BÃ©dard said in a statement. “Transport America is an efficient, well-managed company that generates solid operating margins.”
TransForce said it expects the acquisition will add about $350 million to its revenue.
Transport America will continue to be branded under its current name. Also, the company said the deal won’t result in any employee cuts or relocations, and its entire leadership team will remain in place.
“The acquisition meets all of the criteria we established as we explored ownership options, and we could not be more pleased,” Transport America President and CEO Scott Arves said in a statement. “Together, with shared resources and stronger access to capital to support growth, we will be better positioned to serve customers and provide increased opportunities for our employees.”
One of Transport America’s other “ownership options” was a plan to go public, which it announced in December. At the time, the Eagan company said it was planning an initial public offering (IPO) that it hoped would raise $75 million to help pay off some of its debt. As part of the acquisition, Transport America is now part of a publicly traded company.