TFI acquires truck transport provider JHT
TFI International Inc. said Monday it has acquired JHT Holdings Inc., an asset-light North American transportation provider for Class 6-8 truck manufacturers.
Terms of the transaction were not disclosed. The deal is expected to close in the third quarter. JHT CEO John Harrington will stay on with the company.
Founded in 1933 and based in Wisconsin, JHT transports new trucks from manufacturing and final assembly plants to dealers and end customers. It utilizes an asset-light model that involves driving the customers’ new trucks to their destinations, including cross-border business in Mexico. Some of JHT’s customers include Peterbilt, Kenworth, Freightliner, International, GM, Ford, VW, Toyota, Mack, and Volvo, among others.
JHT accounts for about 65% of the Class 8 hauling market in the US and handles nearly all transportation for Daimler and PACCAR trucks, according to Jason H Seidl, analyst for Cowen & Co. Seidl estimates the purchase price to be about $300 million.
JHT, which generates $500 million in annual revenue, owns and manages a large pool of decking equipment requiring a sophisticated reverse logistics process, TFI (NYSE: TFII) said, adding that its driver capacity is provided through one of the industry’s largest networks of company and independent drivers.
JHTI operates a network of 25 facilities, eight of which are owned, in the U.S. and Canada.
“We were immediately impressed by JHT’s well-run operations, its asset-light approach and leadership in this differentiated niche market,” Alain Bédard, TFI chairman, president and CEO, said in a statement.
Bedard telegraphed an upcoming acquisition on the analyst call last week following the release of TFI’s second-quarter results.
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