Dynamex Inc (Acquired by TransForce Inc 2010)

Note: This company is no longer trading as a separate enterprise.

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2010

December - Montreal-based Transforce had offered to pay $25 cash for each share in Dynamex, representing a total purchase price of approximately $245m, as it pursued greater access to U.S. markets and the specialty same-day delivery sector. Transforce said that Dynamex's board had unanimously approved its offer, which was higher than that of Greenbriar Equity Group LLC for $24 a share.

TransForce Chief Executive 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 specialises almost exclusively in same-day delivery services, a segment generally not offered by TransForce," he said.

Canadian truckers were 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. The acquisition of Texas-based Dynamex, allowed Transforce to provide niche service, same-day delivery and guard against a return to pricing pressures facing the more mainstream industry.

Other companies in Canada, including Mullen Group and Contrans were in similar pursuits to broaden their portfolio of specialised services, which were difficult to enter but were 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.

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Dynamex Inc. is a provider of same-day delivery and logistics services in the United States and Canada. Through its network of branch offices, it provides same-day, on-demand and door-to-door delivery services utilising its ground couriers. In addition, it offers local and regional distribution services such as recurring, often daily, point-to-point deliveries or multiple destination deliveries that require intermediate handling. It also offers outsourcing services, fleet and facilities management services.

With its fleet management service, Dynamex manages and provides a fleet of vehicles at single or multiple customer sites.

The Company's target customers include businesses that distribute time-sensitive, non-faxable items to multiple locations. The primary industries served by Dynamex include financial services, electronics, pharmaceuticals, retail, office products, medical laboratories and hospitals, auto parts, legal services and the Canadian governmental agencies. A significant number of the Company's customers are located in Canada.

In 2008, its revenues were $402.11m.