* Bid valued at $25 per share, or $248 mln
* Greenbriar bid was $24 per share
* Dynamex board unanimously approves Transforce offer
(Adds details, in U.S. dollars unless noted)
By Pav Jordan
TORONTO, Dec 14 Transforce Inc TFI.TO, a
mid-tier Canadian trucker seeking to gain traction in niche
services, said on Tuesday it agreed to buy Dynamex Inc DDMX.O
for $248 million, trumping a rival bid from a private equity
Montreal-based Transforce said it offered to pay $25 cash
for each share in Dynamex as it pursues greater access to U.S.
markets and the specialty same-day delivery sector.
That was higher than an earlier offer from Greenbriar
Equity Group LLC for $24 a share.
Transforce said that Dynamex's board had unanimously
approved its offer.
TransForce Chief Executive Alain Bedard said the
acquisition would allow Transforce, already a significant
player in the package and courier business in Canada, to serve
new sectors and tap U.S. markets.
"Dynamex specializes almost exclusively in same-day
delivery services, a segment generally not offered by
TransForce," said Bedard.
Canadian truckers are moving into less traditional areas
such as collecting garbage and delivering parcels after the
recession exposed their reliance on core trucking businesses
like cargo and small freight shipping. [ID:nSGE6A10LG]
The acquisition of Dallas, Texas-based Dynamex, allows
Transforce to provide niche service, same-day delivery and
guard against a return to pricing pressures facing the more
Other companies in Canada, including Mullen Group (MTL.TO)
and Contrans CSS.TO are in similar pursuits to broaden their
portfolio of specialized services, which are difficult to enter
but are largely unaffected by spot market pricing.
Contrans already made two acquisitions in waste management
in the past two months, including the takeover of Prowerx
Disposal Ltd in September.
Transforce said it would fund the Dynamex acquisition using
its existing credit facilities.
It said the deal, subject to U.S. and Canadian regulatory
approval, should close in the first quarter of 2011.
Transforce shares closed 2.62 percent higher in Toronto at
C$12.55. Stock of Dynamex rose 0.4 percent to close at C$25.30
on the Nasdaq.
(Additional reporting by Gowri Jayakumar in Bangalore)