Vitran Selling U.S. LTL Operation
September 23, 2013
Canadian-based Vitran Corporation has announced it has entered into an agreement to sell its U.S. less-than-truckload business.
In a release, it says the buyer is Matthew Moroun. who is associated with a number of transportation companies with interests that include LTL, truckload, flatbed, third-party logistics and warehousing. Moroun is a director with CenTra, a Michigan-based holding company for trucking operations, among other business interests
"For the last several years, Vitran has invested substantial time and capital to improve its U.S. operating results," said William S. Deluce, Vitran's interim president and CEO. "While we believe these efforts have made Vitran's U.S. LTL business a better operating company, they did not result in financial results that are acceptable to management or the board."
Under the terms of the proposed sale transaction, an entity controlled by Moroun, will pay $2 million to acquire 100% of the common stock of the wholly-owned U.S. subsidiary, which operates Vitran's US LTL business and will assume the its ongoing liabilities. Additionally, he will fund the U.S. operating business until the date of closing, which is scheduled to close within 10 business days. Vitran says there is no assurance that the proposed transaction will be completed within this timeframe, if at all.
Vitran remains a player in the Canadian LTL business.
Matthew Moroun is the son of Manuel "Matty” Moroun, whose company owns the Ambassador Bridge, connecting Detroit and Windsor, Ontario.