A court has cleared the way for TFI International (TSX:TFI) to acquire assets of bankrupt courier BeavEX, allowing TFI International to expand its last-mile profile in the United States.
TFI announced on April 17 that it will pay $7.2 million for selected assets and liabilities of BeavEx, and its affiliates Guardian Medical Logistics, JNJW Enterprises and USXP. The companies will be added to TFI’s U.S. last-mile division, TForce Final Mile. The Canadian transportation company expects to add $100 million to its annual revenue from the purchase.
“This is a superb transaction not only for TFI, but for the valued customers of BeavEx and GML who will continue to receive outstanding service and support as part of the TFI circle of customers,” TFI CEO Alain Bédard said in a statement. “For TFI, these select assets are an outstanding fit with our existing network, bringing additional revenues, as well as logistics and e-commerce expertise, route density and geographic reach to TForce Final Mile.”
TFI’s existing facilities will take on most of the new business, though the company will retain seven of 69 BeavEx/Guardian Medical locations.
TFI’s plans to acquire BeavEx assets emerged in February, when the Atlanta-based courier filed for Chapter 11 protection. A TFI spokesperson said at the time that the acquisition would significantly expand the company’s presence in medical logistics.
In court filings, BeavEx revealed that it had $50 million to $100 million in liabilities. It is unclear how much of those liabilities TFI will assume through the transaction.
TFI reports its first-quarter results on April 23.