TransForce to buy Dynamex for $248m

Canadian transportation and logistics company TransForce has reached an agreement to buy Dynamex, the subject of several takeover bids in recent months, for US$248 million, reported Dow Joes Newswires.

Under the agreement, TransForce will pay Dynamex holders $25 cash for each share, a discount of 0.8 percent compared with Monday's $25.20 closing price, but a premium over previous offers from other companies.

Dynamex, which provides same-day delivery service in the US and Canada for business customers, had been fielding offers from various companies, even entering into a merger agreement with Greenbriar Equity Group. Dynamex told TransForce it has killed its merger agreement with Greenbriar, which called for Greenbriar to pay $24 a share for the company.

Greenbriar couldn't immediately be reached for comment.

"TransForce is currently a significant player in the package and courier sector in Canada, and the acquisition of Dynamex will enhance service to existing customers while proposing a powerful service offering to potential clients," said TransForce chairman and chief executive Alain Bedard.

Dynamex earlier this month reported its fiscal first-quarter earnings slid by more than half amid merger-related costs as revenue increased.
(Source:www.schednet.com)