Less-than-truckload carrier Vitran has announced it has entered into an agreement in which fellow LTL Canadian carrier Manitoulin Transport will acquire the company.

It is purchasing all outstanding shares for $6, with the total transaction, including the assumption of Vitran's outstanding net debt of approximately $29 million, for approximately $128 million.

According to a release, the $6 share price represents a 10.3% premium to Vitran's closing price on NASDAQ stock exchange on Dec 9, and a 38.2% premium to the closing price on NASDAQ on Sept. 20, the day before the announcement of the sale of Vitran's U.S. LTL business.

“Together Vitran and Manitoulin Transport will become a formidable and diversified supplier for customers requiring a full suite of transportation and supply chain services in Canada and the United States,” said Vitran's interim president and CEO, William Deluce.

The agreement has been unanimously approved by the board of directors of Vitran, is subject to approval by the shareholders of Vitran at a special meeting expected to be held in February 2014 and subject to final approval of the Ontario Superior Court of Justice following the meeting. It is also subject to the receipt of applicable regulatory approvals and to satisfaction of other customary closing conditions. The agreement is not conditional on Manitoulin Transport obtaining financing.

It is expected to close in late February or early March 2014

In September Vitran reached an agreement to sell its U.S. LTL business  while last month Manitoulin purchased Canada-based Smooth Freight.