Transforce, DHL Express Canada form alliance

MONTREAL AND TORONTO: TransForce Inc and DHL Express Canada jointly announced today that they have agreed to a 10-year strategic alliance to create an integrated domestic and international shipping and logistics offering.

Through the agreement, TransForce, is buying DHL Express Canada’s domestic business assets and will take over its domestic operations through Loomis Express, a new subsidiary of TransForce. This will allow DHL Express Canada to focus exclusively on the Canadian international shipping segment. The deal is expected to close within thirty days.

“TransForce’s pan-Canadian infrastructure will deliver expanded Canadian coverage to DHL’s domestic customers, and the combination of the two customer bases adds material revenue, creating greater scale in the market with superior efficiencies,” said Alain Bédard, chairman, president and CEO of TransForce Inc. “With our recent Dynamex acquisition, we are significantly increasing our density in the Canadian package and courier sector. We are confident of our ability to successfully integrate these businesses as we have done in the past within the TransForce family of companies and firmly believe that this latest purchase will benefit our shareholders.”

Bédard said the deal is expected to provide TransForce with annualized revenues of more than $275 million. DHL Express’s existing domestic management team will remain at Loomis Express and there will be no impact on other DHL businesses and operations.

“Today’s announcement is a further execution of our global strategy to focus on our core competency, the growing international express business,” said Ken Allen, DHL Express’s CEO. “By entering into a strategic alliance with the market-leading domestic provider, we can even better meet the dynamic and growing needs of our Canadian customers by offering highest quality, seamless integrated shipping solutions that are second-to-none.”