Texas-based Daseke Inc. is the latest acquisition of TFI International, a Canadian company known for its many acquisitions. TFI has completed nearly 200 acquisitions since 1996, and thirty-six have occurred over the last five years.
Acquisition Overview:
Purchase Price: TFI will pay $8.30 per share for Daseke, a 69% premium over the previous closing price.
Financing: The purchase will be funded through a combination of cash and debt.
Strategic Implications:
Revenue Boost: This deal is expected to double TFI's truckload (TL) revenue to approximately $3.6 billion.
Spinoff Consideration: TFI is contemplating spinning off its TL unit into a separate entity.
Daseke's Growth and Position:
Acquisition History: Daseke has undergone significant expansion since 2009, acquiring over 20 companies.
Current Scale: Daseke now boasts a fleet of about 4,900 tractors, 11,000 trailers, and substantial warehousing space, generating $1.8 billion in annual revenue.
Future Outlook:
Shareholder Approval: The merger awaits approval from Daseke’s shareholders.
Expected Closure: The deal is anticipated to conclude in the second quarter of 2024.
Financial Impact: The acquisition is projected to be neutral to TFI's earnings per share in 2024, with a positive impact expected in 2025.
Focus on Integration: TFI plans to improve Daseke’s financial results and integrate its operations effectively.
Market Response:
Stock Movement: Following the announcement, Daseke’s shares saw a significant increase, while TFI also experienced a positive uptick.
This strategic acquisition by TFI represents a significant expansion in its operational scale and hints at future restructuring and specialization in its business segments.
Hi! I'm Adriana and I've been working for FreightCaviar as Head Writer for a little over a year now. Some of my favorite topics to cover are FreightTech, Green Freight, and nearshoring/reshoring.
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