Press release
Heartland Express to Acquire Contract Freighters Truckload Business for $525 Million
NORTH LIBERTY, Iowa, Aug. 22, 2022 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (NASDAQ: HTLD) (“Heartland”) announced today that it will acquire the Contract
About this update from Heartland Express, Inc.
[{"type":"text","content":"NORTH LIBERTY, Iowa, Aug. 22, 2022 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (NASDAQ: HTLD) (“Heartland”) announced today that it will 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 (“TFI Retained Operations”), which are not part of the transaction. Highlights Acquisition will be Heartland Express’ largest, adding CFI’s storied brand, talented team, and cross-border expertise; CFI to continue under its existing brand, management, and terminal locationsCompany will be the 8th largest truckload fleet and 3rd largest irregular route, asset-based truckload carrier in the U.S., with estimated annual pro forma total revenue of approximately $1.3 billion and estimated annual operating cash flow of approximately $260.0 million, as well as estimated pro forma total assets nearing $2.0 billion as of June 30, 2022(1)Operating plan anticipates consolidated adjusted operating ratio(2) of 85% or better within three years and repayment of all indebtedness within four years after closingTransaction is expected to be immediately accretive to earnings excluding transaction costsTransaction value anticipated to be funded with existing cash and borrowing under new $550 million revolving and term loan agreement Heartland Comments Michael Gerdin, Chairman, President, and CEO of Heartland Express, commented: “We are thrilled to welcome CFI to the Heartland Express family of companies, where it will continue to operate from Joplin under its own brand and current leadership team. CFI has exactly what we look for as we expand – significant scale, a respected and recognizable brand, capable management, safe and experienced drivers, a strong asset base, and a complementary terminal network. CFI’s strengths in the north-south midwestern corridor will add to our driver and customer capability, and their cross-border expertise will help us capitalize on the expected long-term freight volume benefits of nearshoring activity by manufacturers. At the same time, we can offer the CFI people a home that is entirely focused on their core – high-s...