TFI to buy Daseke for US$1.1 billion

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by Emily Atkins

TFI International Inc. has agreed to acquire Daseke, Inc. for approximately US$1.1 billion.

Texas-based Daseke’s operations include approximately 4,900 tractors, 11,000 flatbed and specialized trailers, and one million square feet of industrial warehousing space, offering comprehensive transportation and logistics solutions for major shippers. After the merger, Daseke will continue to operate its portfolio of brands as part of TFI’s truckload segment.

The truckload segment is expected to generate approximately US$3.6 billion in annual total revenue, operate one of the largest comprehensive truckload businesses in Canada, and be one of the largest participants in the less-commoditized specialized equipment truckload marketplace in the United States.

TFI said it will evaluate the potential benefits of separating into two distinct public companies – one comprising the truckload segment, and one comprising the LTL, P&C, and logistics segments.

Daseke’s deep expertise in servicing a broad portfolio of specialized and industrial end markets such as high-security cargo, agriculture, manufacturing, and construction, is critical given the relative strength of specialized market dynamics today. We extend a warm welcome to the Daseke team,” said Alain Bédard, chairman, president and CEO of TFI International.

Our immediate focus will be on improving Daseke’s financial results, with the strategic consideration to follow and be ongoing.”

“We believe this transaction to be a tremendous outcome for our Daseke shareholders, providing a near-term liquidity event at a significant premium, and is consistent with our stated priority of progressing opportunities that maximize value for our shareholders. TFI has a proven track record of successfully executing acquisitions that deliver value for its customers, shareholders, partners, and team members,” said Jonathan Shepko, CEO of Daseke.

“We are very fortunate to be joining a like-minded organization who shares our commitment to strong customer relationships, services excellence, and utmost respect for our professional drivers, each of which has fueled Daseke’s success over the last 15 years.”

The merger agreement has been unanimously approved by the Boards of Directors of TFI International and Daseke. The transaction is subject to approval of holders of a majority of the outstanding shares of Daseke common stock and other customary closing conditions, including regulatory approval. The closing is not conditioned on financing.

It is expected to close in the second quarter of 2024.