Vitran Corporation Inc. Focuses on LTL Business With Divestiture of Its Supply
Chain Operation for US$97 Million
TORONTO, Feb. 12, 2013 (GLOBE NEWSWIRE) -- Vitran Corporation Inc.
(Nasdaq:VTNC) (TSX:VTN), a North American transportation firm, today announced
that it has reached an agreement to divest its Supply Chain Operation (SCO)
division to Legacy Supply Chain, based in Portsmouth, New Hampshire, for U.S.
$97.0 million in cash, subject to certain working capital adjustments. Vitran
intends to use a portion of the net proceeds from this transaction to fully
reduce its outstanding debt under its senior revolving credit facility and to
support the development of its LTL business. Vitran's Board of Directors is
also evaluating various options for the use of the remaining net proceeds.
Legacy Supply Chain has obtained written commitments from certain financial
institutions to provide sufficient debt financing to close the transaction.
The financing is subject to customary conditions and the financial
institutions' completion of confirmatory due diligence. The sale of the SCO
business is expected to close by March 1, 2013, upon completion of the Legacy
financing, and is subject to customary conditions for this type of
Vitran's President and Chief Executive Officer Rick Gaetz stated, "We are
extremely excited at finding an excellent fit for our SCO business with Legacy
Supply Chain.Together, SCO and Legacy Supply Chain will become a formidable
and diversified supplier for customers requiring North American supply chain
solutions.It's been a pleasure to have worked with our SCO management group
and the entire team as we have watched them develop professionally while
together building an outstanding business within the Vitran family. There is
no doubt they will continue that success with Legacy Supply Chain.I would
like to thank each and every one of our SCO employees for their efforts and
commitment to Vitran and wish them nothing but the best in the future."
"We will continue the recovery and growth of our existing business and believe
we have positioned Vitran to be a formidable LTL transportation provider in
North America.Our LTL team is energized to aggressively develop the Company
into the future," concluded Mr. Gaetz.
Legacy Supply Chain Chief Executive Officer Ron Cain stated, "We are delighted
to have SCO join Legacy Supply Chain and are excited at the prospects for our
combined company moving forward.We are very pleased with Vitran's SCO
business, employees and the cultural fit between our two companies. We look
forward to closing the transaction and meeting with all employees and
customers in the near future."
BB&T Capital Markets acted as exclusive financial advisor, and McMillan LLP
acted as legal counsel, to Vitran.
About Vitran Corporation Inc.
Vitran Corporation Inc. is a North American group of transportation companies
offering less-than-truckload services.To find out more about Vitran
Corporation Inc. (Nasdaq:VTNC) (TSX:VTN), visit the website at www.vitran.com.
The Vitran Corporation logo is available at
About Legacy Supply Chain, Inc.
Legacy Supply Chain, Inc. is a privately held integrated supply chain and
logistics provider offering distribution and warehousing, supply chain
technology and domestic and global brokerage services.To find out more about
Legacy Supply Chain, Inc., visit the website at www.legacyscs.com.
This press release contains forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Forward-looking statements may be
generally identifiable by use of the words "believe", "anticipate", "intend",
"estimate", "expect", "project", "may", "plans", "continue", "will", "focus
should" "endeavor" or the negative of these words or other variations on these
words or comparable terminology.These forward-looking statements, which
include statements regarding the conditions to closing of the sale of the SCO
division being satisfied, the timing of such closing and the ability of Vitran
to strengthen the business and operations of the LTL business, are based on
current expectations and are naturally subject to uncertainty and changes in
circumstances that may cause actual results to differ materially from those
expressed or implied by such forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause Vitran's actual results, performance or
achievements to differ materially from those projected in the forward-looking
statements.Factors that may cause such differences include, but are not
limited to, the ability of Legacy Supply Chain to secure sufficient debt
financing to fund the purchase price for the SCO division, technological
change, increases in fuel costs, regulatory changes, the general health of the
economy, seasonal fluctuations, unanticipated changes in railroad capacities,
exposure to credit risks, changes in labour relations and competitive
factors.More detailed information about these and other factors is included
in the annual MD&A on Form 10K under the heading "General Risks and
Uncertainties."Many of these factors are beyond the Company's control;
therefore, future events may vary substantially from what the Company
currently foresees. You should not place undue reliance on such
forward-looking statements.Vitran Corporation Inc. does not assume the
obligation to revise or update these forward-looking statements after the date
of this document or to revise them to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
CONTACT: Richard Gaetz, President/CEO
Fayaz Suleman, VP Finance/CFO
Vitran Corporation Inc.
Vitran Corporation Logo
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