Vitran Corp. Inc., a Canadian less-than-truckload (LTL) transportation and supply chain firm, has acquired Milan Express' LTL business. Milan's regional LTL business operates 34 facilities in central and southeastern United States. For the year ending December 31, 2010, Milan's LTL operation generated revenues of $70 million. Upon closing, Vitran expects this transaction to be immediately accretive to its earnings.
Milan Express' LTL operation is operated by its founder Tommy Ross and his son John. "Since 1969, our family has been involved in regional LTL freight transportation,” Tommy Ross states. “The decision was not easy for us. We considered many options, but we believe this transaction with Vitran is the right opportunity. We are very pleased with the new Vitran relationship as it not only offers stability to the majority of our employees, but I feel it gives both our employees and our customers a platform to grow in the months ahead."
The acquisition is part of Vitran's strategy of establishing a regional LTL network serving the entire North American market, explains Rick Gaetz, the company’s president and CEO. Vitran will gain a presence in the states of Alabama, Georgia, Mississippi, North Carolina and South Carolina.
The transaction is expected to close on February 19, 2011.