Platform operator Daseke ended its history as an independent transportation company on Monday when its acquisition by Canada's TFI International closed for $1.1 billion.
The acquisition by TFI TFII It was announced on December 22. The share price for the acquisition was $8.30, after closing at $4.91 on December 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 ceased trading as public companies when they were acquired by others.
Daseke's count of 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 “delivering transportation and logistics solutions that require the use of specialized trailer transportation equipment,” had 2,430 tractors and 6,820 trailers. Although Daseke was primarily known for its platform operations, the Flatbed Solutions segment provided only 41% of the company's revenue, with Specialized Solutions contributing the rest.
Last year, business drivers and owner-operators drove 388.2 million miles, according to the 10-K.
For TFI, the acquisition of Daseke is the 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 tilted toward LTL, enough that most stock analysts who follow TFI now view it as an LTL rather than a truck carrier. And at the time the deal with Daseke was announced, CEO Alain Bédard said a split between TFI and LTL truckload operations and other shorter-distance operations was being considered.
“This acquisition also advances our strategic consideration of creating a unique opportunity for shareholders to invest separately in a specialty truckload business and an LTL. [package and courier] and Logistics,” Bédard said. “Our immediate focus will be to improve Daseke's financial results, with strategic consideration to follow and be ongoing.”
At the end of January, Deutsche Bank began coverage of the FTIs. “We view the LTL industry as one of the most attractive investment areas among all industry sectors, reflecting the consolidated nature of the market and the resulting pricing power,” Deutsche Bank said in its justification for initiating coverage. “We believe a rising tide will lift all boats, and with TFII trading at a notable valuation discount to the group, we are confident of double-digit earnings.”
In announcing the closing of the deal, TFI also said it had closed a $500 million term loan that it described as “oversubscribed.” The three tranches of the loan are $100 million due in March 2025, $100 million due in March 2026 and $300 million due in March 2027.
The charge Daseke now part of TFI International as acquisition closes appeared first on Load waves.
