Titanium Transportation Group Announces the Acquisition of Xpress Group
Revenue and EBITDA run rates increase to $140 million and $15 million
BOLTON, Ontario, Oct. 02, 2017 — Titanium Transportation Group Inc. (“Titanium” or the “Company”) (TSX VENTURE:TTR) today announces that it has acquired the shares of Xpress Group (“Xpress”), a van and flatbed carrier based near Windsor, Ontario. Titanium has acquired all the shares of Xpress for cash consideration of approximately $3.1 million, 374,278 common shares valued at $420,000 and the assumption of approximately $5.2 million in debt.
“This is exactly the type of acquisition we have been waiting for,” commented Ted Daniel, CEO of Titanium. “Backed by our own recent investments in the Windsor terminal and in BlackBerry Radar, we expect to be able to achieve significant synergies between Titanium and Xpress. In addition, Xpress’s customer base complements the cross-border, full-truckload division that we have focused on growing. We are excited and proud to bring the Xpress team into the Titanium fold.”
Founded as a flatbed company more than 30 years ago by owner Dave Tracey, Xpress has grown significantly since then, particularly after the addition of its van division in 2008. The company has a well-established customer base in southern Ontario and the U.S. mid-west that predominantly crosses the border and continues to expand.
Mr. Tracey remarked, “In my view, the acquisition represents the best path forward for Xpress, to continue to add value to what we built from the ground up. I am very excited to now be a part of Titanium’s growth story.”
Titanium funded the acquisition through its operating line. Pro-forma, annual revenue is expected to increase 12% to $140 million and EBITDA is expected to increase 15% to $15 million. The purchase price is subject to working capital adjustments to be calculated in the ordinary course.
Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 450 power units, 1,500 trailers and 550 employees and independent owner operators. Titanium provides truckload, dedicated, and cross-border trucking services, freight logistics, and warehousing and distribution to over 1,000 customers. Titanium is a recognized consolidator of asset-based transportation companies in Ontario, having completed ten asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada’s Fastest Growing Companies for nine consecutive years.