TFI Buys Daseke for $1.1B, Eyes Truckload Unit Spinoff

Texas-based Daseke Inc. is the latest acquisition of TFI International, a Canadian company known for its many acquisitions. TFI has completed nearly 200 acquisitions since 1996, and thirty-six have occurred over the last five years.

Acquisition Overview:

• Purchase Price: TFI will pay $8.30 per share for Daseke, a 69% premium over the previous closing price.

• Financing: The purchase will be funded through a combination of cash and debt.

Strategic Implications:

• Revenue Boost: This deal is expected to double TFI's truckload (TL) revenue to approximately $3.6 billion.

• Spinoff Consideration: TFI is contemplating spinning off its TL unit into a separate entity.

Daseke's Growth and Position:

• Acquisition History: Daseke has undergone significant expansion since 2009, acquiring over 20 companies.

• Current Scale: Daseke now boasts a fleet of about 4,900 tractors, 11,000 trailers, and substantial warehousing space, generating $1.8 billion in annual revenue.

Future Outlook:

• Shareholder Approval: The merger awaits approval from Daseke’s shareholders.

• Expected Closure: The deal is anticipated to conclude in the second quarter of 2024.

• Financial Impact: The acquisition is projected to be neutral to TFI's earnings per share in 2024, with a positive impact expected in 2025.

Company Statements:

• Alain Bédard's Vision: TFI’s CEO, Alain Bédard, emphasized the acquisition's fit with existing operations and its potential to scale TFI’s truckload segment.

• Focus on Integration: TFI plans to improve Daseke’s financial results and integrate its operations effectively.

Market Response:

• Stock Movement: Following the announcement, Daseke’s shares saw a significant increase, while TFI also experienced a positive uptick.

This strategic acquisition by TFI represents a significant expansion in its operational scale and hints at future restructuring and specialization in its business segments.

Source: FreightWaves