TLSS Closes on the Acquisition of Severance Trucking

About this update from Transportation And Logistics Systems, Inc.

[{"type":"text","content":"Deal Will Expand Coverage Area Throughout New England and Increase Revenues to Approximately $30 MillionJUPITER, FL / ACCESSWIRE / February 6, 2023 / Transportation and Logistics Systems, Inc. (OTC PINK:TLSS) ("TLSS" or the "Company"), the parent company of certain wholly-owned operating subsidiaries, that together, provide a suite of logistics and transportation services, announced today that on February 3, 2023, through its newly-formed wholly-owned subsidiary, TLSS-STI, Inc. ("TLSS-STI"), it closed on an acquisition of 100% of the outstanding stock of Severance Trucking Co., Inc., Severance Warehousing, Inc. and McGrath Trailer Leasing, Inc. (collectively, "Severance") headquartered in Dracut, Massachusetts, with an additional warehouse location in North Haven, Connecticut, with an effective date as of the close of business on January 31, 2023.Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, commented, "For over 100 years, generations of the Severance family have built a stellar reputation in the industry. To me, that speaks volumes of their integrity and their commitment to their customers they have served in the New England market. I am thrilled that several of the Severance family members will remain with Severance and join forces with us to grow our combined business even further, including Jamie Severance, who will remain as the terminal manager. The acquisition also gives us a substantive vehicle repair, maintenance and refurbishment facility as well as an expanded sales organization. We believe that this key strategic acquisition will prove itself to be yet another positive step towards profitable growth and expansion. Our entire organization is ecstatic about this union and we fully intend to carry on the legacy, history and tradition built and nurtured by the Severance family for more than a century."The total purchase price was $2,250,000, plus closing expenses of $10,747. TLSS-STI: (i) paid $365,613 in cash at closing; (ii) assumed and paid off $152,748 in vehicle debt; and (iii) entered into a $1,572,939 secured promissory note with the Seller, with interest accruing at the rate of 12% per annum. The entire unpaid principal under the note, shall be due and payable in three (3) equal payments on August 1, 2023, February 1, 2024, and August 1, 2024, ...

More updates from Transportation And Logistics Systems, Inc.