TFI International (NYSE:TFII) will buy U.S. third-party logistics provider DLS Worldwide from RR Donnelley & Sons (NYSE:RRD) for $225 million in one of the Canadian company’s largest acquisitions in recent years.
TFI announced the acquisition Tuesday. It represents a major move by the Montreal-based company to scale its U.S.-based logistics business.
Based in the Chicago suburbs, DLS Worldwide generated $550 million in revenue during a recent 12-month period, according to TFI. Once the acquisition closes, TFI said it expects DLS will generate $22.5 million in operating income in the first four quarters.
To put the acquisition in perspective, TFI’s logistics segment generated about $780 million in revenue and $58 million in operating income in 2019.
DLS has a diverse book of business covering less-than-truckload (LTL), truckload, intermodal, freight forwarding, expedited and parcel.
“The asset-light model of the DLS business will expand our reach through a significant agent station network and represent a compelling opportunity as our first major U.S. logistics operation focused primarily on LTL,” TFI CEO Alain Bedard said in a statement.
DLS will operate as a standalone unit in TFI under the name TForce Worldwide. DLS President Thomas Griffin will remain.
Bedard told financial analysts in February that TFI’s U.S. logistics segment represents “one of the diamonds that’s going to be shined,” with the potential for major growth by capitalizing on growing e-commerce volumes. Earlier this year, he also compared the company’s logistics offering to Amazon’s.
While trucking remains TFI’s single-largest business, the DLS acquisition will make asset-light logistics an increasingly important segment.
The deal marks one of TFI’s largest acquisitions in recent years. It follows a $219 million share offering in August.
TFI has been on an acquisition roll since June, picking up three of bankrupt Comcar’s four main trucking units, the Canadian LTL carrier APPS Transport and container hauler Gusgo.
In March, TFI acquired the courier services business of R.R. Donnelley.
TFI International is Canada’s largest trucking and logistics company.
Click for more FreightWaves articles by Nate Tabak
Ransomware attack hits Canadian trucking company Manitoulin
Trucker arrested after $10M cocaine bust at US-Canada border
How Walmart solved carrier payment woes in Canada with blockchain
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now