TransForce completes purchase of DHL Express Canada's domestic business; DHL Express Canada and new subsidiary Loomis Express to operate as two separate companies providing integrated domestic, international suite of logistic, shipping services
MONTREAL and TORONTO
June 28, 2011
– TransForce Inc. ("TransForce" or "the Company") (TSX: TFI) and DHL Express (Canada) Ltd ("DHL Express Canada") jointly announced today the formal closing of their previously announced agreement whereby TransForce, a North American leader in the transportation industry, has purchased the assets of DHL Express Canada's domestic business and will be operated through a newly established subsidiary, Loomis Express. With the closure of the transaction, Loomis Express and DHL Express Canada will begin operating as two separate companies, providing a completely integrated domestic and international suite of innovative and strongly competitive logistics and shipping services.
Under the strategic alliance, Loomis Express will focus on providing expanded domestic operations in the Canadian package and courier sector, allowing DHL Express Canada to leverage its core strength and focus exclusively on the Canadian international shipping segment.
"This transaction creates a strong competitive advantage, bringing together two leading organizations to deliver a more powerful service across Canada and the world. The deal solidifies TransForce's position as a leading Canadian provider of package and courier services. We have now been working together for almost two months and customer reaction to the enhanced service offering had been most positive. Similar to the February Dynamex agreement, the DHL Express asset purchase is asset light," stated Alain Bédard, Chairman, President and Chief Executive Officer of TransForce Inc.
"Since our initial announcement of this strategic alliance, we have been working closely with TransForce to ensure a smooth and stable transition," said Ken Allen, Chief Executive Officer of DHL Express. "Our primary commitment is to provide the highest quality international shipping. We look forward to the strategic alliance with TransForce to continue offering seamless integrated shipping solutions."
DHL Express' existing domestic management team is remaining at Loomis Express to ensure continuity for all customers.
There will be no impact on other DHL businesses and operations in Canada and all other regions and countries globally. With over 5000 Canadian employees working for DHL Express, DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea, Canada continues to be an important market for the company.
From the perspective of DHL Express, Mr. Allen added that this alliance strategy has worked very well in other major markets for DHL customers and he expects the same here in Canada.
An integrated advertising campaign entitled "The Power of 2" continues across Canada to underscore how DHL Express and Loomis Express will be working together to bring Canadian businesses a more powerful delivery service in Canada, and the world.
TransForce Inc. is a North American leader in the transportation industry. Operating across Canada and the United States, TransForce creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned, operating subsidiaries. Under the TransForce umbrella, companies benefit from corporate financial and operational resources to build their businesses and increase their efficiency. TransForce companies service four well-defined segments:
* Package and Courier;
* Truckload, which includes specialized truckload and dedicated services;
* Specialized Services, which includes waste management, energy sector services, logistics, and ancillary transportation services.
TransForce Inc. (TFI) is publicly traded on the Toronto Stock Exchange (TSX). For more information, visit http://www.transforcecompany.com.
DHL is the global market leader in the logistics industry and "The Logistics company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education. DHL is part of Deutsche Post DHL. The Group generated revenue of more than 51 billion Euros in 2010.