Press release
Heartland Express Closes Acquisition of Contract Freighters Truckload Business
NORTH LIBERTY, Iowa, Aug. 31, 2022 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (NASDAQ: HTLD) (“Heartland”) announced today that it has closed the previously
About this update from Heartland Express, Inc.
[{"type":"text","content":"NORTH LIBERTY, Iowa, Aug. 31, 2022 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (NASDAQ: HTLD) (“Heartland”) announced today that it has closed the previously announced transaction 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. (NYSE: TFII) (“TFI”), for a cash enterprise value of $525 million, subject to certain adjustments. The term CFI does not include the CFI Dedicated or CFI Logistics U.S. brokerage operations, which were not part of the transaction. Michael Gerdin, Chairman, President, and CEO of Heartland Express, commented: “We are excited to officially welcome CFI into the Heartland Express family of brands, alongside Millis Transfer and Smith Transport. We look forward to working with CFI’s leadership team to gain meaningful synergies from the acquisition.” In conjunction with the acquisition of CFI, Heartland entered into a $550 million unsecured credit facility, which includes a $100 million revolving credit availability and $450 million in term loans funded at closing. The credit facility will mature in five years and contains customary terms and conditions, including financial covenants. The credit facility includes a consortium of lenders, including joint bookrunners JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. Immediately after the closing, Heartland had an estimated net leverage ratio of approximately 1.25x and approximately $170 million of cash and available borrowing under the credit facility.(1) Advisors Scudder Law Firm, P.C., L.L.O. served as transaction and legal advisor to Heartland. About Heartland Heartland Express, Inc. is an irregular route truckload carrier based in North Liberty, Iowa, serving customers with shipping lanes throughout the United States through its brands Heartland Express, Millis Transfer, Smith Transport, and CFI. Heartland focuses on medium to short haul regional freight, offering shippers industry-leading on-time service so they can achieve their strategic goals. Since its initial public offering in 1986, Heartland has grown from approximately $20 million in revenue to one of North America’s largest, most profitable, and best capitalized truckload carriers. Heartland has been recognized 18 times by Forbes Magazine as one of the Top 200 Best...