Dive Brief:
- TFI International is “on the hunt” for acquisition possibilities, CEO Alain Bédard said during a Q2 earnings call last week.
- That targeted interest covers areas such buying a nonunion LTL business for some $200 million in the U.S. and a logistics business like the one acquired last December, automotive player Hearn Industrial Services, Bédard told analysts.
- “Yes, we like to grow organically, but M&A has been the success story of TFI,” the executive said. “But never forget that one of the easiest things to buy is your own stock.”
Dive Insight:
Canada-headquartered TFI is interested in expanding its nonunion business, the company suggested on the earnings call.
But that growth would be targeted: The company is interested in dense areas, such as California, the Carolinas, Ohio, Michigan, New York and Texas.
“When you build from scratch, the advantage you have is you pick the states,” Bédard said. TFI’s existing non-union LTL business currently handles around 1,000 shipment per day.
The company has spent $1.8 billion in M&A in recent years, primarily with its acquisition of the flatbed and specialized transportation provider Daseke, which it secured in 2024.
Other carriers have sought to expand their networks, such as Knight-Swift Transportation Holdings and Saia. But TFI has primarily relied on its unionized LTL carrier in the U.S., TForce Freight, which it acquired from UPS in 2021.
If current valuations are over-priced, TFI would still be taking those into consideration but also be evaluating a business’ potential growth, Bédard said.
