TFI to sell CFI businesses to Heartland for $525M
TFI International recently agreed to sell its CFI truckload, temperature control, and Mexican non-asset logistics businesses to Heartland Express for $525 million.
The transaction, subject to customary closing conditions, is expected to close in the third quarter, TFI said.
The CFI businesses currently operate primarily in TFI’s U.S.-based conventional truckload segment, providing comprehensive service offerings, including time-definite, dry-van truckload, long-haul and short-haul freight transportation, reefer transportation, and Mexico-based non-asset logistics services. The three businesses have approximately 2,000 tractors, 7,800 trailers, and 2,800 employees. CFI’s Mexican logistics business has a network of nearly 200 C-TPAT certified Mexico carrier partners.
TFI is keeping CFI’s dedicated and U.S. logistics divisions, the Canada-based transportation company said.
“We are incredibly pleased to announce this strategic transaction, which is tremendously beneficial for all involved—a true win-win-win for TFI International, Heartland, and of course the CFI TL, TC and MX business itself, which is a strong cultural fit with Heartland and will have expanded opportunities to prosper with a leader in asset-based trucking,” said Alain Bédard, chairman, president and CEO of TFI. “For TFI, the decision to sell was reached following a thorough evaluation of our portfolio, and aligns perfectly with our longstanding focus on driving cash flow and ROIC.
“Specifically, by allowing TFI to concentrate its U.S. operations on higher-return LTL, asset-light logistics, and specialized truckload, this transaction will reduce our capital intensity, with some of the proceeds used to pay down debt in the near term and over time redeployed with the objective of generating higher returns.
“We thank the CFI teams that are now joining Heartland for their tremendous contributions to TFI over the years and wish them all the very best in the years ahead.”
CFI’s truckload, temp control, and Mexican non-asset logistics businesses generated approximately $450 million in revenue before fuel surcharges, and operating income of approximately $50 million in 2021, TFI said.
“We are proud to welcome the CFI team to our growing family of companies as soon as the transaction closes,” said Michael Gerdin, chairman and CEO of Heartland. “CFI will continue to operate from Joplin, Missouri, under its legendary brand and existing leadership. Together, our companies will offer customers the nation’s third-largest, asset-based, irregular-route truckload capacity and drivers unparalleled opportunity.
“We have appreciated working with the teams from TFI International and CFI to reach this highly strategic and commonsense transaction for the benefit of all parties.”
