Flatbed operator Daseke ended its history as an independent trucking company on Monday when its acquisition by Canada’s TFI International closed for $1.1 billion.
The acquisition by TFI TFII was announced on December 22nd. The share price for the acquisition was $8.30, after closing at $4.91 on Dec. 21.
Daseke reported revenue of $1.57 billion in 2023. In 2016, revenue was $651.8 million.
Daseke’s disappearance from the list of publicly traded carriers follows that of companies such as US Xpress and USA Truck, as well as non-trucking companies whose public earnings provided a window into the strength or weakness of the business. These include Travel Centers of America and Echo Global Logistics, which stopped operating as public companies when they were acquired by others.
The tally on Daseke’s operations, as reported in its final 10-K filing with the Securities and Exchange Commission, is that its Flatbed Solutions segment had 2,339 tractors and 2,849 trailers. The Specialized Solutions segment, which the company described as focused on “providing transportation and logistics solutions that require the use of specialized trailer-hauling equipment,” had 2,430 tractors and 6,820 trailers. Although Daseke was primarily known for its flatbed operations, the Flatbed Solutions segment provided only 41% of the company’s revenue, with Specialized Solutions providing the remainder.
Last year, the company’s and owner-operator’s drivers logged 388.2 million miles, according to the 10-K.
For TFI, the Daseke acquisition is its second in less than a month. It announced the acquisition of less-than-truckload carrier Hercules Forwarding on March 11.
TFI’s acquisitions in recent years have skewed toward LTL, so much so that most equity analysts who follow TFI now see it as an LTL rather than a truckload carrier. And at the time of announcing the deal with Daseke, CEO Alain Bédard said a split between TFI and LTL cargo operations and other lower-mileage operations was under consideration.
“This acquisition also furthers our strategic consideration of creating a unique opportunity for shareholders to invest separately in a specialized trucking and LTL business [package and courier] and logistics activities,” Bédard said. “Our immediate focus will be on improving Daseke’s financial results, with strategic consideration to follow and take forward.”
At the end of January, Deutsche Bank initiated TFI coverage. “We view the LTL sector as one of the most attractive investment areas among all industrial sectors, reflecting the consolidated nature of the market and the resulting pricing power,” Deutsche Bank said in its rationale for initiating coverage. “We believe the rising tide will lift all boats, and with TFII trading at a significant valuation discount to the group, we have confidence in double-digit gains.”
In announcing the deal’s closing, TFI also said it had closed a $500 million term loan that it described as “oversubscribed.” The three tranches of the loan amount to $100 million maturing in March 2025, $100 million maturing in March 2026 and $300 million maturing in March 2027.
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