Pretty safe to assume that the decline in SP is due to the very weak markets this morning and not this NR. GLTA
11:05 AM EDT, 08/22/2022 (MT Newswires) -- TFI International Inc. (TFII.TO) said Monday that it signed a definitive agreement to sell certain assets of its CFI business to Heartland Express Inc. for US$525 million.
Heartland will acquire CFI's truckload, temp control and Mexican non-asset logistics businesses. In 2021, the segments generated US$450 million in revenue before fuel surcharge and operating income of about US$50 million.
TFI, which at last look fell 2% on both the TSX and the NYSE in early Monday trading, said it is keeping the dedicated and US logistics divisions. The company's fiscal 2022 guidance remains unchanged.
TFI said the transaction allows the company to focus on its US operations while reducing capital intensity. The company plans to use some of the proceeds to pay down debt and redeploy it over time for higher returns.
"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 [return on invested capital," TFI Chairman, President and CEO Alain Bedard said.
The transaction is expected to close in the third quarter, subject to the satisfaction of customary closing conditions, including regulatory approvals.
Shareholders of TFI and Heartland unanimously approved the transaction.
Price: 129.82, Change: -2.78, Percent Change: -2.10