Heartland Express announced Monday the acquisition of Contract Freighters Inc.’s (CFI) truckload unit and its logistics unit in Mexico from TFI International for $525 million. The deal does not include CFI’s dedicated trucking business or its U.S. brokerage operations.
The $525 million purchase is the largest in Heartland Express history, according to a news release from Heartland. The combination will make Heartland the eighth-largest TL fleet and the third-largest asset-based, irregular route carrier in the U.S.
CFI will continue to operate under its existing brand, management, and terminal locations.
“CFI has exactly what we look for as we expand — significant scale, a respected and recognizable brand, capable management, safe and experienced drivers, a strong asset base, and a complementary terminal network,” said Michael Gerdin, chairman, president and CEO of Heartland Express. “CFI’s strengths in the north-south midwestern corridor will add to our driver and customer capability, and their cross-border expertise will help us capitalize on the expected long-term freight volume benefits of nearshoring activity by manufacturers. At the same time, we can offer the CFI people a home that is entirely focused on their core – high-service, irregular route, asset-based truckload freight transportation. Over time, we expect to gain meaningful synergies and operate our consolidated business on a larger scale at our historical margins.”
The transaction is expected to close in the third quarter of 2022.